Question

Which of the following has the largest impact on opportunity cost

Answer 1

The correct answer is option D.

Limited resources have the largest impact on opportunity cost.

Consumers who need limited resources have the biggest impact on opportunity costs.

These consumers want finished products within a limited period of time.

They have to make best use of the limited opportunities which are available to lesser people who need bigger resources.

Answer 2

Opportunity cost will pose a large impact on limited resources.

Opportunity cost is an example of micro economy. This can be also known as the alternative cost which considers the cost for going another better service that a consumer can obtain from that commodity.

There must be a consideration on risk and benefits when an individual makes an economic decision. This is why an opportunity cost must measure the risk that to be taken against a benefit.