Business choices 1.5.5 Flashcards
1
Q
what is is an opportunity cost
A
the cost of missing out on the next best alternative
the potential loss of opportunity after choosing one alternative over another
2
Q
give an example of an opportunity cost
A
deciding not to go into work for a day in the week results in lower wages
3
Q
what is a trade off
A
giving up one thing to gain another
4
Q
give an example of a trade off
A
not doing enough market research, product launch is less successful
5
Q
what is the difference between an opportunity cost and a trade off
A
a trade-off is when you give up an alternative that you don’t really care about
an opportunity cost is giving up a desirable alternative
