Opportunity cost, Sunk cost, Cost-benefit analysis

Opportunity cost, Sunk cost, Cost-benefit analysis

Identify and briefly define 1 of the following concepts:

  • Opportunity cost
  • Sunk cost
  • Cost-benefit analysis

Based upon the concept that you have selected, respond to each of the following questions:

 

  • What are the basic steps for the application of your chosen concept in resource allocation?
  • Provide an example of how this concept can be applied in a specific health care resource allocation.
  • How will the application of this concept impact the structure of the health care institution when allocating resources?