The opportunity cost in the scenario above is the three lost possibilities, Harry could have undergone but decided to go to his parents house.
“Possibility cost is the importance of the next-best alternative when a determination is made; it's what is given up,” explains Andrea Caceres-Santamaria, senior economic education specialist at the St. Louis Fed, in a current Page One Economics: Money and Overlooked Opportunities
To learn more about opportunity cost, refer
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