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FMTradeoffs&OppCosts
Opportunity Cost & Trade offs
Question | Answer |
---|---|
Trade Off Definition | Give up one thing for another |
Opportunity Cost Definition | The value of the next best alternative that must be forgone as a result of the decision |
Give up daily pop to save $5 this week | trade off |
I lost time with my friends because I had to study | trade off |
what you could have done with what you gave up | opportunity cost |
what you sacrifice to get something else | trade off |
I could have gone to the movies but I gave up the $12 so I could go to the game. | opportunity cost |
I could have made $20 babysitting but I decided to use that time to hang out with my friends | opportunity cost |
I called off work so I lost my job | trade off |
Fred decided to get Nikes instead of Reeboks | trade off |
Barney picked the $20 jeans instead of the $50 jeans | trade off |
Oscar the Grouch could live in a house but instead he lives in a trash can. It's no wonder he's not happy | opportunity cost |
Mom used the car to go to the grocery store. So it isn't available. I could have been there sooner, but I have to walk to a friends house. | opportunity cost |