Ricardo works part time at a local computer store. One day, his manager approaches him about moving from cashier to floor superv
isor. Ricardo is excited because the promotion comes with a raise; however, the extra work hours would take away from time with his friends. In the end, he decides to take the promotion.What is Ricardo’s opportunity cost?losing extra time to spend with his friendsbeing able to use the extra money for summer football camplosing the ability to spend any time with his friendsreceiving another promotion in six months
Economists implement the term opportunity cost to denote that people have to give up on some things to acquire some other things they desire. As there is a limitation of resources, every time you choose the way to use them, you are at the same time giving up on some other options. In economics, whatever choice you make implies an opportunity cost.
