Question

How can knowing the opportunity cost help you make a better decision? (2 points) a You know what you might be missing. b You can save your money. c You can share with friends. d You know the price of a good.

Answer 1

The benefit of understanding opportunity cost is that it gives a better understanding of the cost of a decision. It makes you understand that the cost of a decision is not only a dollar amount it’s also what you are unable to do if you make certain decisions. Understanding this will improve anyone’s decision-making skills.