The concept of opportunity cost exists because
A) resources are scarce.
B) goods have different prices.
C) shortages occur.
D) the value of services is hard to determine.

Question

Quizplus · Accepted Answer

Opportunity cost exists because resources are scarce. This means that people and businesses must make choices about how to use their limited resources, and whenever they choose one option, they must give up the benefits of the next best alternative. This forgone benefit is the opportunity cost of the chosen option.

The Concept of Opportunity Cost Exists Because