The value of the second-best alternative that a person gives up when making a choice represents the opportunity cost . The answer to your question is C. I hope that this is the answer that you were looking for and it has helped you.
What represents the value of the second-best alternative that a person gives up when making a choice ??
Opportunity cost : The value of the second-best alternative that a person gives up when making one choice instead of another. Scarcity: An economic condition created by an excess of human wants over the resources necessary to satisfy them; an inability to satisfy all of everyone's wants.
What a person gives up when making a choice?
Opportunity cost is what you give up (the benefits of the next best alternative) when you make a choice.
How do individuals make choices?
When individuals make decisions, they are necessarily deciding between taking one course of action over another . In doing so, they are choosing both what to do and, by extension, what not to do. The value of the next best choice forgone is called the opportunity cost.
What is opportunity cost and its importance in decision-making?
“Opportunity cost is the cost of a foregone alternative . If you chose one alternative over another, then the cost of choosing that alternative is an opportunity cost. Opportunity cost is the benefits you lose by choosing one alternative over another one.”
What represents the value of the second best alternative that a person gives up when making a choice quizlet?
The opportunity cost should be expressed as the value of the next best alternative to the choice made.
Why does scarcity want every toy on the Magic Tree?
Why does Scarcity want every toy on the magic tree? [ Because she does not understand that she has to make a choice; no one can have everything they want .]
Which factor determines who a society will produce goods and services for?
Which factor determines who a society will produce goods and services for? The economic system in the society .
How scarcity affects choices and decision making?
The ability to make decisions comes with a limited capacity . The scarcity state depletes this finite capacity of decision-making. ... The scarcity of money affects the decision to spend that money on the urgent needs while ignoring the other important things which comes with a burden of future cost.
How do people make economic decisions?
Economists use the term marginal change to describe a small incremental adjustment to an existing plan of action. ... Rational people often make decisions by comparing marginal benefits and marginal costs. Thinking at the margin works for business decisions.
How do individuals make economic decisions?
People make choices because they cannot have everything they want . All choices require giving up something (opportunity cost) Economic decision-making requires comparing both the opportunity cost and the monetary cost of choices with benefits. purchase goods and services. Why do people save money?
What is a real life example of opportunity cost?
Examples of Opportunity Cost. Someone gives up going to see a movie to study for a test in order to get a good grade . The opportunity cost is the cost of the movie and the enjoyment of seeing it. At the ice cream parlor, you have to choose between rocky road and strawberry.
How is opportunity cost used in decision making?
Put simply, opportunity cost is what a business owner misses out on when selecting one option over another . It's a way to quantify the benefits and risks of each option, leading to more profitable decision-making overall.
What is the rule for using opportunity cost to make decisions?
In business, opportunity costs play a major role in decision-making. If you decide to purchase a new piece of equipment, your opportunity cost is the money spent elsewhere. Companies must take both explicit and implicit costs into account when making rational business decisions.
What is the most valued trade-off?
The most highly valued opportunity or alternative forfeited when a choice is made; The most valued opportunity or alternative you give up to do something–the next best choice–is that something's opportunity cost . ... *speaking about trade-offs is just another way of speaking about opportunity cost.
Is the most highly valued or next best alternative that is forfeited when a choice is made?
Opportunity cost is the (b) most highly-valued alternative forfeited when a choice is made. This is because the resource can be put to several uses. When the resource is allocated for a specific work, then the opportunity cost will be the best alternative.
