Question

<!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> Consider the following about Opportunity cost
1. It considers the cost of opportunity that has been missed out
2. It functions only in case of scarcity

Which of the following statements is/are correct?

• A. 1 Only
• B. 2 Only
• C. Both 1 and 2
• D. None of the above

Answer 1

The correct option is C Both 1 and 2

<!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> Opportunity costs represent the potential benefits an individual, investor, or business misses out on when choosing one alternative over another. The scarcity of resources will lead to making different decisions so one type of "need" or one "investment opportunity" could be satisfied at the cost of another.