ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Opportunity cost or alternative cost, as the name suggest, is the cost of opportunity lost, i.e. an opportunity to generate revenue is lost, because of the scarcity of resources such as labour, material, capital, plant and machinery, land and so on.

Detailed explanation-2: -Opportunity cost (also known as “alternative cost, ”) is the difference between a project’s cost estimate and another option that must be foregone in order to implement the project. Every choice we make also means giving up another option.

Detailed explanation-3: -What is the difference between a trade-off and an opportunity cost in economics? The difference between trade-offs and opportunity cost is that a trade-off refers to the decision to pick an alternative, whereas opportunity cost refers to the value of the forgone alternative.

Detailed explanation-4: -synonyms for trade-off accommodation. accord. adjustment. arrangement. bargain.

Detailed explanation-5: -Individuals are forced to make trade-offs every time they use their resources in one way and not in another. The cost of making a trade-off is known as opportunity cost-the value of the next best alternative that has to be given up to do the action that is chosen.