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VARVARA [1.3K]
3 years ago
10

if you spend $30 on new clothes you are likely to say new clothes cost you $30 but the money you spend is not the real cost of t

he new clothes describe what the real cost opportunity cost would be if you spend $30 on new clothes
Social Studies
1 answer:
julsineya [31]3 years ago
6 0

Answer:

The <em>opportunity cost</em> is a <em>potential gain you lose by choosing one particular alternative over the other</em>. It is the highest benefit of another alternative that you did not choose.  

Let us look at the <u>given example</u>. Say, you earn 10 dollars per hour. It means that you need to work for three hours to be able to buy new clothes for 30$. Meanwhile, you do not enjoy your summer job and would be much happier to spend these three hours hiking with your dog. <u>The joy you have lost</u> by choosing the alternative of earning these 30$ to be able to buy new clothes, is the opportunity cost.

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