The concept of opportunity cost is important in determining the price paid by an individual for a nonprofit product.

Question

Quizplus · Accepted Answer

Opportunity cost refers to the value of the next best alternative foregone when making a choice. When an individual decides to purchase a nonprofit product, they are giving up the opportunity to use that money for something else. Therefore, understanding opportunity cost is important in determining the price they are willing to pay for the product.

The Concept of Opportunity Cost Is Important in Determining the Price