In economic terms, every action entails:

Question

Quizplus · Accepted Answer

Every action entails opportunity costs, which is the cost of the next best alternative that is foregone. This is because resources are scarce and can be used for multiple purposes, hence choosing to use them in one way means sacrificing their use for other alternatives. Fixed costs and prime costs are specific types of costs that are associated with production, while risk is not necessarily present in every economic action.

In Economic Terms, Every Action Entails