Oppotunity Cost

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  • Created by: Alex
  • Created on: 06-03-13 19:49

The oppotunity cost of a good or an activity is the foregone benefit of the next best alternative.


The oppotunity cost of growing carrots on an allotment instead or growing cabbage.

A scarce resource is one with a positive oppotunity cost.

A free resource is one with a zero oppotunity cost.

E.g. Oxygen.

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