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SCARCITY & OPPORTUNITY COST, Opportunity-Cost-Formula, OP, scarcity…
SCARCITY & OPPORTUNITY COST
SCARCITY
IS WHEN THE
MEANS TO FULFILL
ARE LIMITED AND COSTLY
IS ALSO REFERRED
TO AS "PAUCITY."
REFERS TO THE
BASIC ECONOMIC PROBLEM
IS THE ALLOCATION OF
LIMITED MEANS TO
FULFILL UNLIMITED WANTS
AND NEEDS.
OPPORTUNITY COST
IS A MAJOR
CONCEPT IN ECONOMICS.
UNDERSTANDING WHEN CHOOSING
AN INVESTMENT OR
ANOTHER ALLOWS BETTER
DECISION-MAKING
BENEFITS AN INDIVIDUAL,
INVESTOR, OR BUSINESS
MISSES OUT ON
MISSES OUT ON WHEN
CHOOSING ONE ALTERNATIVE
OVER ANOTHER.
OPPORTUNITY COST IS
THE FORGONE BENEFIT
THAT WOULD HAVE
BEEN DERIVED BY AN
OPTION NOT CHOSEN.
