Answer to Question #251167 in Microeconomics for Fasial

Question

How does the idea opportunity cost relates with the definition of economics?

Answer 1

When you make a decision, the opportunity cost of that action is what you have to give up. It is the value of the next best chance, to put it another way. Scarcity has a direct impact on opportunity cost. One of the most fundamental notions in economics is the concept of opportunity cost.