1.5.5 Flashcards
1
Q
What is an opportunity cost?
A
Loss of the next best alternative when making a decision.
2
Q
What is trade off?
A
Two things cannot be fully achieve, so a business may experience a little bit of benefits from both choices.
3
Q
How could a trade off be useful be here?
’ A business has a budget of £1 million to allocate between advertising and training’
A
You could allocate a certain amount in each, ultimately benefiting slightly from both.
