Monday, March 5, 2007
Opportunity costs
I think when economists talk about opportunity costs they're basically just saying everything has a trade-off. For example; if I buy a 50$ game, I could have instead used that 50$'s to hang out somewhere with my friends, and that trade off is one that I have to understand before buying the game. Basically, money can be used on anythingl and learning what to use it on is what opportunity costs are.
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