Practicing Success
Practicing Success
CUET Preparation Today
What is the correct answer of the opportunity cost from the given options ? |
There is a cost of leaving more goods which are used for additional good The Scare resources have alternative usages on a particular price There is always a cost of having a little more of one good in term of the amount of the other good that has to be forgone There is always a cost of having one good in term of the amount of other good which has being used |
There is always a cost of having a little more of one good in term of the amount of the other good that has to be forgone |
The correct answer is option (3) : There is always a cost of having a little more of one good in term of the amount of the other good that has to be forgone Opportunity cost refers to the value of the next best alternative that must be forgone or sacrificed when a choice is made. If we want to have more of one of the goods, we will have less of the other good. Thus, there is always a cost of having a little more of one good in terms of the amount of the other good that has to be forgone. This is known as the opportunity cost of an additional unit of the goods. |
