1.5.5 Business Choices Flashcards
1
Q
What are Opportunity Costs?
A
Opportunity cost can be defined as the benefit lost of the next best alternative when making a choice (Best foregone alternative)
2
Q
What decisions have an Opportunity cost?
A
There is an opportunity cost for all decisions made by businesses
3
Q
Why are there Oppertunuty costs?
A
As all resources are scarce, businesses must make choices in order to allocate these resources
