Opportunity Cost Illustrated
We make choices as consumers every day. Opportunity cost is defined as a person's ''next best alternative'' or ''the cost of what you give up" when you make a choice. Think of a recent decision you made regarding your career. What was your opportunity cost for making that choice? What was your best alternative?
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The way to look at opportunity cost is as follows...
Say you take a job - job A - it pays $40,000/year.
Your opportunity cost could be thought of as the other opportunities that you did not ...
Solution Summary
We illustrate the economic idea of Opportunity Cost.
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