Question

concept of opportunity cost​

Answer 1

Opportunity cost is the value of the next-best alternative when a decision is made; it's what is given up,” explains Andrea Caceres-Santamaria, senior economic education specialist at the St. Louis Fed, in a recent Page One Economics: Money and Missed Opportunities.

Answer 2

Opportunity cost is the cost of lost opportunity in economics.

Explanation:

1. When a person decides to choose one economic good, activity, or service, he has to give up the other opportunities that he could have availed in the available resources.
2. This is known as opportunity cost.
3. In simpler terms, opportunity cost is the cost of the next best alternative.
4. For example, when a person has Rs.10, he can either buy a pen or eat a burger with that money.
5. When he decides to eat a burger, the cost of buying the pen will be is opportunity cost.