Question

What's opportunity cost? Provide a hypothetical situation/scenario showing an

Answer 1

Answer: See explanation

Explanation:

Opportunity cost is what one forgoes when we choose a different alternative. Due to the scarcity of resources, we all have choices to make.

For example, if one is faced with a choice of either spending a certain amount of money on buying a book or going to the cinema. If the person eventually buys a book, then the opportunity cost is the cost of the movie not seen and the enjoyment that's comes with going to the cinema.