Opportunity Cost

Prof. Mario Villarreal-Diaz explains the scarcity inherent in the world, and how this necessarily implies a world of tradeoffs.  In such a world, the pursuit of a choice requires forgoing all other potential choices.  Opportunity cost is simply what is given up when a choice is pursued.  This is an important concept, as it provides guidance as to where scarce resources will be more productive.

6 Comments

Leave a Reply