ANSWERS: 2
  • Opportunity cost (economic opportunity loss) is an important concept in economics, since it implies the choice between mutually exclusive, yet desirable results. Opportunity cost plays a critical role in ensuring that resources are used efficiently. Opportunity costs are not restricted to actual financial costs, but will consider lost time, output forgone, lost benefits, and other circumstances. It expresses the basic relationship between scarcity and choice.
  • A chance you had yesterday you may not have today. If you went partying instead of studying for today's exam, you paid an opportunity cost in going to the party. Now that the exam is over, you will not pay the same opportinity cost by making the same decision.

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