Economics Today and Tomorrow, Student Edition
1st Edition
ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter3: Your Role As A Consumer
Section: Chapter Questions
Problem 12AA
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Question
explain how opportinity cost affects consumer behacvior
Expert Solution
Step 1
When a consumer purchases one good or service, then he/she is giving up on the chance to purchase another. The next best alternative that is not chosen is the consumer's opportunity cost. As seen that a consumer choice always involves different alternatives, every consumer choice has an opportunity cost.
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