Why are opportunity costs relevant when making decisions?© BrainMass Inc. brainmass.com June 4, 2020, 2:40 am ad1c9bdddf
Why are opportunity costs relevant when making decisions?
Relevant costs are costs that differ between decisions. That is, you don't need to look at costs that won't change because they don't inform potential outcomes. For instance, when you go to buy a car, do you have to consider the cost of your rent? No. Why not? It doesn't change ...
Your tutorial is 226 words in everyday language and gives an example of opportunity cost and relevant costs.