Question

whay is the most important thing of opportunity cost?

and the important of scarcity influence decisition ?

Answer 1

Answer:

Opportunity cost can be defined as any utility foregone by selecting one alternative over some another. In layman's language opportunity cost is choosing the alternative over next best alternative available.

It is defined as the value of a factor in its next best alternative use or it is the cost of foregone (sacrificed) alternative it is the value (monetary) of the next best use to which the resource could be put.

Opportunity cost is very important basic concept in Economics it is because of resources unlimited we are always making choices from the available alternatives. rasta opportunity cost of using a resource is defined as the value of next best use to which that resource could be put.

Scarcity means acute shortage of a certain commodity but in Economics it means limitation of supply of a commodity in relation to its demand it is in excess of demand over available supply that is demand of resources is greater than supply of resources the goods and services which are used to carry out production are called resources resources can be natural human resources and manmade resources resources are also referred to as factor inputs and non factor inputs so long as human wants for goods and services remain ahead of resources the problem of scarcity would exist.

Economic problem is a problem of choice it arises due to scarcity of resources which can be put to alternative uses.the scarcity of resources is in relation to the quantum of human wants are human being faces the economy problem when supply of resources is short as compared to their demand the root cause of economic problem is scarcity of resources.

Scarcity and decision are inseparable they go hand-in-hand this is because the problem of choice arises due to scarcity of resources the human wants are unlimited and different intensity but resources to satisfy these words are not only scars but also have alternative uses cause emergence of problem of choice for problem of decision resources bean unlimited there would have been no economic problems in solvents cannot be satisfied due to limited resources we face the problem of decision and problem of choice.

For example a plot of land cannot be used for farming as a playground for constructing a house as a factory as a shopping mall at sector at the same time this plot of land has many uses but a choice has to be made between all the uses as it can be used at a time for only one purpose