Studied by 0 peopleWhat is an opportunity cost?
The loss of the next best alternative when making decisions
What is an example of an opportunity cost?
When a consumer chooses to purchase a new phone, they may be unable to purchase new jeans and the jeans represent the loss of the next best alternative
What is a trade-off?
When two things cannot be fully achieved, so having one thing may mean having less of another
What is an example of a trade-off?
In market research, foregoing market research may help the business to get its products to the market quicker, however the trade-off is that the product may not have the features or qualities desired by the market
Note
Flashcard