The cost of opportunity is by definition the amount of things you don't do or buy, because of choosing doing or buying something else. In this case, Maria can make:
8 pancakes
2 waffles
This means that at every moment, she can choose to make or 8 pancakes or 2 waffles, but not both. If we continue with this logic, in the time she could make 1 waffle, she could have chosen to make 4 pancakes. This is her cost of opportunity.
The Federal reserve is acting as a lender of last resort when its lends money to banks and other financial institutions because no one else will/
<h3>What is the Federal Reserve?</h3>
It is the United states central banking system that is responsible for the nation's monetary policy and regulation of the supply of money and interest rates.
One of the role of Federal reserve is to act as a lender of last resort when its lends money to banks and other financial institutions because no one else will.
This is how the market for board games would be affected in the explanation below
Explanation:
Because the manufacturers of the board game expect that the demand for their games would experience a decline, they would have to adjust their Production according to the decline. This is going to shift supply curve to the left, because of the decline in the production. Then equilibrium price would then increase as the quantity decreases because of the shift of the supply curve to the left.
