Microeconomics is considered to be the study of scarce resources. Here, consumers (both individuals and organizations) must make allocation decisions. These three basic trade-offs include which goods/services are to be produced, how to produce them, and who gets them. Briefly explain to me the three trade-offs within a specific good/service within a local area of yours.© BrainMass Inc. brainmass.com October 9, 2019, 7:22 pm ad1c9bdddf
First let consider the definition of opportunity cost:
In economics, opportunity cost, or economic cost, is the cost of something in terms of an opportunity forgone (and the benefits that could be received from that opportunity), or the most valuable forgone alternative (or highest-valued option forgone), i.e. the second best alternative. For example, if a city decides to build a hospital on vacant land that it owns, the opportunity cost is some other thing that might have ...
The solution provides detailed explanations and discussions for the problem.