Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
explain how opportinity cost affects consumer behacvior
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Step 1
When a consumer purchases one good or service, then he/she is giving up on the chance to purchase another. The next best alternative that is not chosen is the consumer's opportunity cost. As seen that a consumer choice always involves different alternatives, every consumer choice has an opportunity cost.
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