What is opportunity cost

Oppurtunity cost is a situation were you are putting time in something over something else for example : When there are 2 people are having 2 each businesses , so lets take one business is a business of bananas and second is the business of fishes , so one day the 2 people had to gather fishes and bananas thus 1 man could get 10 fishes or 10 bananas and the second could also get 10 fishes or 10 bananas but then if a man collects 3 fishes he had an opportunity to catch 3 bananas thus it costed him 3 bananas if the bananas had more value

Opportunity cost at production

so now if one business man is dependent on higher quantity but lower quality he gave up the opportunity to produce items in higher quality but lower quantity

Questions

1 : How is the term “Opportunity Cost” defined

2 : What might be the opportunity cost for a igcse economics student

3 : Why do consumers face opportunity cost in decision making

4 : Why do workers face opportunity cost in decision making

1 A - An opportunity cost is the value of the option not taken when a business makes a decision. For example, if the business is deciding whether to purchase two new tractors, the opportunity cost of not doing so would be the potential revenue and profitability lost by not being able to take on another project.

2 A - The Igcse student left an opportunity to learn other subject

3 A - Sometimes consumers get attracted to something really nice and leave an opportunity to purchase other items

4 A - When workers struggle to choose jobs