Opportunity cost exists because of

Name: Opportunity cost exists because of
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Opportunity cost exists because of scarcity. Scarcity means that resources are limited and therefore choices must be made about how to allocate them. When choices are made about how to allocate resources, the opportunity costs of the foregone alternatives must be considered. This is the essence of opportunity cost. Poverty, greed, and self-interest may influence decisions, but they are not the root cause of opportunity cost.

Opportunity Cost Exists Because of