Think of a decision you''ve made lately (that''s not too personal) that was difficult to make because of the opportunity cost involved. Discuss how you made your final decision. How did you decide which opportunity cost you were more comfortable accepting (what made giving up one thing easier than giving up another)?
If we talk in simple terms that opportunity cost is the ratio of what we give up to the but again
It is a very important concept in economics because as we all know that for any economy, there are limited resources and they have to make decisions from these choices for optimal outcome
Let's take an example- Suppose a day after tomorrow is my semester papers and tonight is a very close friend birthday party
Now I have to decide whether to read hard or go for the party
The two choices are very close to each other because in one case the paper and in second case the close friend's which party cannot be leave
But here from the opportunity cost one option has to be given up for the other
So will select the best option that is for studying for the semester papers because ultimately it will give me a good marks and better career opportunity
Somehow I will manage to make understand my friend
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