ECONOMICS
OPPORTUNITY COST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The cost increases
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The cost stays the same
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The cost goes down
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The cost doubles
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Detailed explanation-1: -When raw materials become scarce, their prices increase, leading to higher supply costs.
Detailed explanation-2: -Scarcity causes consumers to have to make choices based on the resources they have and the balance between what they need and what they want. Consumers tend to place a higher value on goods that are scarce and harder to access.
Detailed explanation-3: -A good is scarce if the choice of one alternative requires that another be given up. The existence of alternative uses forces us to make choices. The opportunity cost of any choice is the value of the best alternative forgone in making it.
Detailed explanation-4: -Because of scarcity, every time we do one thing we necessarily have to forgo doing something else desirable. So there is an opportunity cost to everything we do, and that cost is expressed in terms of the most valuable alternative that is sacrificed….