1.5 - Entrepreneurs & Leaders

Question 1

Define Opportunity Cost

Answer 1

Opportunity cost is the loss of the next best alternative when making a decision

Due to the problem of scarcity, choices have to be made about how to best allocate limited resources amongst competing wants and needs

Question 2

Define trade off

Answer 2

A trade-off occurs when two things cannot be fully achieved

Having more of one thing may mean having less of another