INSTRUCTIONS: Write an essay that is no longer than two pages (I will not read past the second page), written in either Arial, Calibri, or Times New Roman font. Font size must be between 10 – 12 and the line spacing must be between 1.5 – 2. Leave a one-inch margin on all sides, top, bottom, right, and left. Leave one line spacing between paragraphs. Because you will submit your essay electronically in Canvas, you do not need to write your name on the page however, you must select a title for your essay and the title must be centered and in bold letters in the first line. Your essay must address fluidly all areas asked in the question; it is an analytic composition where you are explaining and informing the reader on these issues. Your essay must not be a list of independent answers to each of the questions put together in a paragraph format. Plagiarism will not be tolerated on this assignment. A student who engages in this practice will receive a zero. Plagiarism is the act of taking someone’s words or ideas as if they were your own. Study the essay rubric for more details about my expectations on this assignment. Save your file in either .doc, .docx, .rtf, or .pdf before submitting.

QUESTION: Explain the concept of opportunity cost and the Law of Diminishing Returns. How are they related? Why economists use the concept of opportunity cost when they want to determine cost rather than the traditional view of cost, i.e., cost out of pocket? Illustrate with an original and relevant example these concepts and how they are related. You may not copy the definitions in the textbook or the examples used by the author. You may not use the examples I used during the lecture either. You must explain these concepts in your own words and use an original and relevant example.