The scenario best illustrates opportunity costs. Chloe is choosing to focus on her original art and hand-embroidered towels, which means she is giving up the opportunity to sell her other products. The concept of opportunity cost refers to the value of the next best alternative that is foregone when making a decision. In this case, the revenue and potential success from the products Chloe is no longer selling represent her opportunity costs.
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? (1 point) Responses Scarce resources Scarce resources Absolute advantage Absolute advantage Equilibrium price Equilibrium price Opportunity costs.
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