What is the cost of what you have to give up when making a choice?
Demand
Opportunity cost
Economics
Supply
1 answer
The cost of what you have to give up when making a choice is known as the opportunity cost. It refers to the value of the next best alternative that you have to forgo in order to choose one option over another. In economics, the concept of opportunity cost is fundamental in decision making, as it involves considering the benefits and drawbacks of different choices and analyzing their opportunity costs to make the most efficient decision. Both supply and demand factors are important in determining opportunity costs, as they influence the availability and desirability of alternatives.