BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -A trade-off happens when you give up something you want in order to get something else you want. The statement is TRUE. When there are a limited amount of goods, consumers have to choose from a limited quantity of goods then in order to consume a particular good, the consumer needs to trade off it with another good.

Detailed explanation-2: -: a giving up of one thing in return for another : exchange. trade off transitive verb.

Detailed explanation-3: -The term “trade-off” is employed in economics to refer to the fact that budgeting inevitably involves sacrificing some of X to get more of Y. With a fixed amount of savings, one can buy a car or take an expensive vacation, but not both. The car can be “traded off” for the vacation or vice versa.

Detailed explanation-4: -A trade-off involves a sacrifice that must be made to get a certain product or experience. A person gives up the opportunity to buy ‘good B, ’ because they want to buy ‘good A’ instead.

Detailed explanation-5: -Opportunity cost is the cost of missing out on the next best alternative. In other words, opportunity cost represents the benefits that could have been gained by taking a different decision. All businesses have to make choices-and those choices have implications. In business, resources are usually scarce or limited.