Question

State four features of opportunity cost​

Answer 1

Answer:

Opportunity cost is an economic term that refers to the value of the next best available option when a particular decision is made, that is, what is lost or not gained by choosing a certain option (which is supposed to be more beneficial than the option that was rejected).

In all decision making, each option must be weighed and evaluated before a decision is made. The more at stake, for example, if a company has to decide which products to produce, the more complex such calculations become. The opportunity cost is, therefore, a key concept when solving cases due to lack and efficiency of materials. Another example that can be given is the opportunity cost of taking a week off from work. The opportunity cost in that case is the loss of work, with the consequent loss of economic income.