'The opportunity cost principle states that the true cost of something is the least desired alternative you have to give up to get it. economic surplus you receive from getting it. economic Surplus You give up to get it. next best alternative you have to give up to get it'
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Step 1: The opportunity cost principle states that the true cost of something is the least desired alternative you have to give up to get it. Show more…
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Opportunity cost is the a. purchase price of a good or service. b. value of leisure time plus out-of-pocket costs. c. best option given up as a result of choosing an alternative. d. undesirable sacrifice required to purchase a good.
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Opportunity cost is the value of the next best alternative in a decision. Imagine that you have $150 to see a concert. You can either see "Hot Stuff" or you can see "Good Times Band." Assume that you value the Hot Stuff concert at $225 and the Good Times concert at $150. Both concerts cost $150 per ticket, but it would take you a couple of hours to drive to Hot Stuff's concert and you have to be in school the next morning for an exam. Good Times is right here in town. Explain how you would assess the opportunity cost of seeing Good Times in concert. What is the opportunity cost of going to the Good Times concert?
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What does increasing marginal opportunity costs mean? What are the implications of this idea for the shape of the production possibilities frontier?
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