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Explain Opportunity costs. Give a comprehensive example of the opportunity cost of a decision.

Explain Opportunity costs. Give a comprehensive example of the opportunity cost of a decision.

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Opportunity costs - opportunity costs is explanation of decision making in scarcity.often time we come to a point where we have two choose one alternative over other. In doing so we forgone the benefit of other best alternative which we didn't choose is known as opportunity cost.

suppose you have some money and two options to buy from that money. Either you can spend that money on buying a dress for you or you can go for dinner in a fancy restaurant. These are the two best alternative you have to choose. If you went for dinner you are forgoing the benefits of new dress or if you are buying a dress than you are forgoing the benefits vof dinner.

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