ECONOMICS
OPPORTUNITY COST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Steve decided to buy the brand new iPhone that just came out instead of putting money aside for a vacation next summer. What was his choice?
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new iPhone
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vacation next summer
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Either A or B
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None of the above
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Explanation:
Detailed explanation-1: -The correct answer is a. A computer company produces fewer laptops to meet tablet demand. Opportunity cost defines the benefit obtained by having a commodity after forgoing some other commodity. In the problem statement, the computer company incurs an opportunity cost of laptops for tablets.
Detailed explanation-2: -The correct answer is b. Benefits foregone by not choosing an alternative course of action.
Detailed explanation-3: -Opportunity cost refers to the value of the next best alternative.
Detailed explanation-4: -One method for studying opportunity cost is to think in terms of: risk and ability.
There is 1 question to complete.