Question

A person who wants to buy a compact disc (cd) has just enough money to buy one, and chooses cd a instead of cd

b. what is cd b?

Answer 1

If someone who wants to acquire a compact disc (CD) has just sufficient money to buy one, and chooses CD a instead of CD b, then CD B is the opportunity cost.

To add, opportunity cost. the loss of potential gain from other alternatives when one alternative is chosen.

Answer 2

The answer is Opportunity Cost. To better understand what this question is asking, it is right to explain what opportunity cost is.

Opportunity cost is what you have to give up to get what you want. In this case, Client X has to give up on cd b because he does not have enough money to purchase it and ends up buying cd a. To get the most out of life, we have to be aware of what we are giving up on in order to get something else. Client X has made the choice of buying cd a and forgotten the the other option for now.