Chapter 3- Opportunity Cost

Opportunity Cost

The best alternative forgone

Opportunity cost for consumers

The vast majority of us cannot by everything we like, so we need to decide between goods and services. We do so by prioritising certain things over others.

Opportunity cost for workers

Influenced by factors like
- Wages
-Chances of promotion
-Job Satisfaction
-Good work environment

Opportunity cost and producers

Producers must choose what to do with their limited resources and their decisions will be based on profit

Opportunity cost and government

The government00 has to carefully consider its expenditure of tax revenue on various things, according to the needs of the region. If the city needs more healthcare, the opportunity cost involved may be reduced expenditure on education. 5