62,922 views
20 votes
20 votes
Explain why opportunity cost is an important concept for producer

User Hholtij
by
2.6k points

1 Answer

18 votes
18 votes

Answer:

When we decide to do one thing, we are deciding not to do something else. To ensure that we make the right decisions, it is important that we consider the alternatives, particularly the best alternative. Opportunity Cost is the cost of a decision in terms of the best alternative given up to achieve it

User Jesper Blad Jensen
by
2.9k points