This video teaches the concept of Opportunity Cost. Opportunity cost is what you must give up to obtain something else, the second-best alternative. However, what you must give up to obtain your first choice is not really money--it is whatever other good or service you would have spent the money on as your next-favorite choice.

Key Concepts

Choice, Cost/Benefit Analysis, Decision Making, Opportunity Cost, Productive Resources, Scarcity, Costs, Alternative

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