When the San Francisco city manager faces a complaint that the city council chamber podium is not accessible to individuals with disabilities,he responds that the $1 million improvement will not happen because "that money could be spent building 70 curb ramps." Which economic principle does this statement BEST represent?
A)Markets move toward equilibrium.
B)The true cost of something is its opportunity cost .
C)"How much" is a decision at the margin.
D)When markets don't achieve efficiency,government intervention can improve society's welfare.

Question

Quizplus · Accepted Answer

The city manager is referencing the concept of opportunity cost, which is the idea that the cost of something is not just the monetary cost, but also the potential alternative options that have been foregone in choosing that option. In this case, the city manager is stating that the money spent on improving accessibility at the podium would mean sacrificing the opportunity to build 70 curb ramps, which could potentially benefit a larger number of individuals with disabilities.

When the San Francisco City Manager Faces a Complaint That