Opportunity cost exists because
A)of scarcity.
B)prices must adjust to eliminate shortages.
C)production could not occur without the opportunity cost of using resources.
D)the value of economic goods is positive while the value of goods is zero.

Question

Quizplus · Accepted Answer

Opportunity cost is the cost of foregone alternatives, and it exists because of scarcity. If resources were abundant and unlimited, there would be no need to make choices as everything could be produced without any trade-offs. However, since resources are scarce, choosing one option necessarily means giving up the benefits of another option. Therefore, opportunity cost exists because of the fundamental problem of scarcity in economics.

Opportunity Cost Exists Because