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21 July, 19:24

You choose to complete your homework rather than watch television so that you can earn a good grade. You made the choice with the lowest

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  1. 21 July, 21:55
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    You made the choice with the lowest "Opportunity cost".

    Explanation:

    Opportunity cost in simple terms, can be explained as "You get one by losing the other".

    So why this opportunity cost is necessary? Let us understand.

    This plays a significant role in "Personal finances". This is the effective part to be learnt to make decisions on finance.

    Some of the real life examples are listed below:

    Attending the interview is important than attending an entertainment event Only if you spend time and money you can see a movie

    "Theorie der gesellschaftlichen Wirtschaft" coined the word "opportunity cost".
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