Question

Mohammed has just bought a new oven. Explain 'opportunity cost' to Mohammed.​

Answer 1

In micro Economics,Opportunity cost is the next best alternative foreign is called opportunity cost.

The opportunity cost of the oven that Mohammad had gotten are the items that he could had spent this money on that he didn't buy.

Example:- Let assumed Mohammad had 100 rupees but need this new oven, a New oven shrit and a pair of snakes and this amount can only get him one of these items.

since Mohammad has gone ahead the buy of oven instead of snakers or shrit, the opportunity cost of getting the oven is the shrit and snakers that he don't buys.

This is because he would lose the benefits that he would have gain from using the he don't buys.

Answer 2

Answer:

The opportunity cost to Mohammad of buying a new oven is that he could use the money for the better managemant of his bakery