Opportunity cost and trade off ppt
The opportunity cost of a choice is the value of the best alternative given up. Scarcity is the condition of not being able to have all of the goods and services one wants. It exists because human wants for goods and services exceed the quantity of goods and services that can be produced using all available resources. Opportunity cost is the second-best alternative (or the value of that alternative) that must be given up when scarce resources are used for one purpose instead of another. It is the “real” cost of the decision.