For a resource in short supply, the opportunity cost of the resource is positive.

Name: For a resource in short supply, the opportunity cost of the resource is positive.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Opportunity cost is the cost of the next best alternative foregone, and in a situation where a resource is in short supply, choosing to use that resource for one purpose means giving up the opportunity to use it for another purpose. Therefore, the opportunity cost of the resource in short supply is positive.

For a Resource in Short Supply, the Opportunity Cost of the Resource