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What is opportunity cost? Give an example of a choice that you have made that involved opportunity cost.
Answer:
Answer by Student
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Opportunity cost
is what we give up when we choose one thing over another.
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It helps us to compare the
costs and benefits
of different choices and see what we are losing and gaining when we make a decision.
- For example , if I have ₹100 and I want to buy a pen or a pencil, I can only buy one of them. If I choose to buy a pen, the opportunity cost is the pencil that I could have bought instead. If I choose to buy a pencil, the opportunity cost is the pen that I could have bought instead.
Detailed Answer by Teachoo
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Opportunity cost
is what we give up when we choose one thing over another. This means that every choice has a cost and a benefit. The cost is what we miss out on when we make a decision. The benefit is what we gain from our decision. Opportunity cost helps us to compare different choices and see what we are losing and gaining when we make a decision. It also helps us to think about the value of our choices and how they affect our happiness and well-being.
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It helps us to compare the
costs and benefits of different choices
and see what we are losing and gaining when we make a decision. This means that we have to think about the advantages and disadvantages of each option and how they affect us and others. For example, if we have to choose between going to the park or doing our homework, we have to consider the benefits of having fun or learning something new, and the costs of missing out on the other activity or getting a bad grade.
- For example , if I have ₹100 and I want to buy a pen or a pencil, I can only buy one of them because I don’t have enough money for both. If I choose to buy a pen, the opportunity cost is the pencil that I could have bought instead. The benefit is that I can write with the pen and use it for different purposes. If I choose to buy a pencil, the opportunity cost is the pen that I could have bought instead. The benefit is that I can erase with the pencil and correct my mistakes.
