Question
Opportunity cost of production of a commodity is
Answer: Option A
Answer: (a)
The concept of opportunity cost is based on scarcity and choice. The opportunity cost of a commodity is the next best alternative commodity sacrificed. In other words, the opportunity cost of a commodity is forgoing the opportunity to produce alternative goods and services.
If one commodity is produced another commodity is sacrificed. So the opportunity cost of producing a good is equal to the cost of not producing another commodity.
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Answer: (a)
The concept of opportunity cost is based on scarcity and choice. The opportunity cost of a commodity is the next best alternative commodity sacrificed. In other words, the opportunity cost of a commodity is forgoing the opportunity to produce alternative goods and services.
If one commodity is produced another commodity is sacrificed. So the opportunity cost of producing a good is equal to the cost of not producing another commodity.
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