Asked by
InLove TheReal
on Nov 04, 2024
Verified
A car's real cost is its opportunity cost. Opportunity cost is determined by
A) the price of the car.
B) relative prices.
C) wealth.
D) the prices of the goods that are compliments to a car.
Opportunity Cost
The forfeiture of possible benefits from other options when a specific choice is made.
Real Cost
The total cost of producing a good or service, considering all resources including time and opportunity costs.
- Explain the concept of opportunity cost in the context of budget constraints and consumer choice.
Verified Answer
DS
Learning Objectives
- Explain the concept of opportunity cost in the context of budget constraints and consumer choice.