ClassHall Instructor Staff asked 6 years ago
In economics we are taught that opportunity cost is the alternative forgone, or the option a person has to give up in order to get something when the resources available only permits them to make ONE choice among other alternatives.
Now, the option which is eventually chosen is obviously the choice, while the other one foregone in order the make this choice is regarded as the real cost.
Why is this so? Is it not somewhat confusing to call a foregone alternative the real cost when nothing was spent to get it? I don’t seem to get the idea.
Please economists in the hall, over to you.
Sadiq Barau answered 5 years ago
Now, the option which is eventually chosen is obviously the choice, while the other one foregone in order the make this choice is regarded as the real cost.
Sadiq Barau answered 5 years ago
Now, the option which is eventually chosen is obviously the choice, while the other one foregone in order the make this choice is regarded as the real cost.
Sadiq Barau answered 5 years ago
Now, the option which is eventually chosen is obviously the choice, while the other one foregone in order the make this choice is regarded as the real cost.
Halima Ahmadu
replied 5 years ago Why are you just repeating?
Sadiq Barau answered 5 years ago
Now, the option which is eventually chosen is obviously the choice, while the other one foregone in order the make this choice is regarded as the real cost.