Why is opportunity cost important?

Opportunity Costs help in maximising economic profits, and help in deciding efficient utilisation of available resources. Resources like capital, labor, land are not infinite; they are limited.Hence it is imperative to understand the opportunity costs that are involved when an alternative is foregone to choose another available alternative. Opportunity costs help in choosing the best option among the available options, hence it is important. You can read about the Indian Economy Notes For UPSC Preparation in the given link.

Further readings:

  1. Bad Banks – Idea Proposed Due to COVID-19
  2. Cashless Economy in India – UPSC GS-III Notes

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