Question

You decide to join the economics club, but this means you can't join the accounting club because it meets at the same time. Which economic principle does this statement best represent?

Answer 1

Opportunity cost is the economic principle this statement best represent.

Explanation:

Opportunity cost refers to what you have to give up buying in terms of certain products or services that you want. If economists use the word "cost," we usually mean the cost of opportunity. The true cost of something is what you have to give up to get it.

In economic theory, the cost of something is what you give up to get it. In economics, the cost of opportunity relates to the most valued option that you have to give up getting something special.

Answer 2

The concept her is "the real cost of something is what you must give up to get it"

Explanation:

As we come across trade-offs it is a necessary to make decisions on the next best alternatives which is the principle of opportunity cost.

Opportunity cost is the benefits and advantages that a business entity or an individual loses on choosing one alternative decision over the other. It is calculated with the help of the following formulas,

$\text{Opportunity Cost = Total Revenue - Economic profit}$

Or,

$\text{Opportunity cost }= \frac{\text{What one sacrifice}}{\text{What one gain}}$

In economical terms, choices are measured in terms of opportunity costs.