Opportunity cost is :a)Direct costb)Total costc)Accounting costd)Cost ...
Opportunity cost is the cost of foregone opportunity. When we choose one option, we forego the opportunity to choose another option. Therefore, opportunity cost is the value of the next best alternative that we could have chosen but did not choose.
Explanation:
Opportunity cost is an important concept in economics because it helps us understand the true cost of an economic decision. It is not just the cost of the option we choose; it is also the cost of the options we did not choose. For example, if we choose to spend money on a vacation, the opportunity cost is the value of the things we could have bought with that money but did not buy.
Importance of Opportunity Cost:
Opportunity cost is important because it helps us make better decisions. By understanding the true cost of our choices, we can make more informed decisions. We can also evaluate the benefits of our choices against the costs. For example, if we choose to go to college, the opportunity cost is the value of the money and time we could have spent on something else. If the benefits of going to college outweigh the opportunity cost, then it is a good decision.
Conclusion:
In conclusion, opportunity cost is the cost of foregone opportunity. It is the value of the next best alternative that we could have chosen but did not choose. It is an important concept in economics because it helps us understand the true cost of our choices and make better decisions.
Opportunity cost is :a)Direct costb)Total costc)Accounting costd)Cost ...
Opportunity cost is the forgone benefit that would have been derived from an option not chosen. To properly evaluate opportunity costs, the costs and benefits of every option available must be considered and weighed against the others
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