Chloe has decided to reduce the number of products that she makes and sells in her handmade home goods online shop. She will now dedicate all of her time, energy, and money to creating the best original art and hand-embroidered towels possible. In an effort to achieve more success and sales with these specific items, Chloe will have to give up selling the other products that her shop used to feature. What concept does this scenario BEST illustrate?

Question

(1 point)
Responses

Scarce resources

Scarce resources

Absolute advantage

Absolute advantage

Equilibrium price

Equilibrium price

Opportunity costs

Answer 1

Opportunity costs

Answer 2

ARE YOU SURE

Answer 3

Yes, I am sure that the scenario described best illustrates the concept of opportunity costs. Opportunity costs refer to the value of the next best alternative that is forgone when making a decision. In this scenario, Chloe is giving up the opportunity to sell other products in order to focus on creating and selling original art and hand-embroidered towels. By choosing to specialize in these specific items, Chloe is acknowledging that she has limited time, energy, and money and is making a trade-off by dedicating them to these particular products, thereby forgoing the opportunity to sell other items.