Asked by Reginald Louis on May 28, 2024
Verified
Because resources are scarce,the true cost of anything is its opportunity cost.
Opportunity Cost
The missed opportunity for profit from different options when a specific choice is made.
Resources
Assets, materials, and inputs used to produce goods and services, including land, labor, capital, and entrepreneurship.
- Understand the concept of opportunity cost in economic decision making.
Verified Answer
KC
Kassu ChathuMay 29, 2024
Final Answer :
True
Explanation :
Opportunity cost is the value of the next best alternative forgone when a choice is made. Since resources are scarce, choosing to use them for one thing means giving up the opportunity to use them for something else, and that is the true cost of the choice.
Learning Objectives
- Understand the concept of opportunity cost in economic decision making.
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