Opportunity cost occurs because of a producer’s need to
The opportunity cost is the value of the most valuable choice out of those that were not taken. When economists refer to the “opportunity cost” of a resource, it means that resource used the value of the next-highest-valued alternative. If you spend time and money going to a movie, you cannot spend that time at home reading a book, and you can't spend the money on something else. A benefit, profit, or value of something must be given up to acquire something else. Since every resource (land, money etc.) can be put to alternative uses, every action, choice, or decision has an associated opportunity cost. This is illustrates an opportunity cost: Amir only has time to study or to play basketball. Assessing opportunity cost involves making choices and dealing with consequences. One method for studying opportunity cost is to think in terms of tradeoffs
Opportunity cost occurs because of a producer’s need to C. allocate resources.
Grade: 9
Subject: computers and technology
Chapter: opportunity cost
Keywords: Opportunity cost, producer, resources, limit, protect
