To explain: The
Explanation of Solution
The economic choices made by people involve the exchange of one good or service for another. This exchange of one good or service for another is called a Trade-off.
The opportunity cost of any trade-off will be the most preferred possible alternative. In a trade-off, a person has to make a sacrifice of his good or service to get another commodity. For example, if a person has two options; to buy a computer or to buy a mobile phone. In this case, if the person buys (trade-off) the computer then the opportunity cost of the computer is the cost of the mobile phone.
Chapter 1 Solutions
Economics Today and Tomorrow, Student Edition
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Corporate Finance (4th Edition) (Pearson Series in Finance) - Standalone book
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