Analyze the sentences according to structure and
grammar use.
1. The word ‘himself’ underlined in the text, is
being used in the sentence as a reflexive
pronoun.2. The negative form of: ‘This phenomenon
goes by the name of ‘opportunity cost,...’, is:
‘This phenomenon doesn’t go by the name of
‘opportunity cost,…’
3. The words in bold in the text are examples of
irregular verbs. 4. The word ‘however’ in: ‘To make the point,
however, we must make a brief excursion into
logic.’ is being used as a contrastive connector
Choose the alternative which presents the correct
ones:
Opportunity Cost
This phenomenon goes by the name of ‘opportunity cost,’ since by not investing in more equipment and a more rigid production flow, the company is forgoing the opportunity to earn increased profits. These costs are every bite as real as the payment of dollars out-of-pocket.
This notion _______ opportunity cost can be reinforced _________ a famous saying ______ Benjamin Franklin, no slouch himself _________ operations management. To make the point, however, we must make a brief excursion into logic. One truth of logic is the validity of the so-called contrapositive, which says simply that if the statement “If A, then B” is true, then it is also true that “If not B, then not A.” That is, of every time A occurs B follows, then we can be sure that if B does not occur, then A did not occur as well. Enough logic then, and back to Ben Franklin.
One of his Poor Richard sayings is that “A penny saved is a penny earned.” We have all recognized the truth of that since childhood, but I assert that by this saying Ben showed us he knows everything about opportunity cost. After all, what is the contrapositive of “A penny not earned is a penny not saved (i.e., a penny sent). All we are saying by this notion of opportunity cost is that “a penny not earned (an opportunity forgone) is a penny spent.” We shall often have occasion to consider opportunity costs, in analyzing and deciding various operations issues.
SCHMENNER, Roger W. Production/Operations Management. 5th
Edition. Prentice-Hall, 1993.
