Markets under ideal conditions, ensure an efficient allocation of scarce resources, but in particle conditions are usually not ideal, critically analyze the statement with examples
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Well! Economic decision making requires the selection of the alternate which can give you the maximum benefit and through which you can cover all of your costs. Opportunity cost is the forgoing cost and when there are a number of business alternatives then the decision makers select the alternative which has the highest opportunity cost because if the decision maker selects any other alternative he has lost the opportunity. Moreover, all of the alternatives would be acceptable which covers the economic cost. For example, if a company wants to invest in pre-buying of stock instead of investing in some other business then the company has to analyze its opportunity cost and the economic benefit for it.
Opportunity cost
answered 5 months ago
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no i do not agree with you because every decision maker does not have alternate so he has to find out a proper way plz explain alternate and forgoing cast
comment made by Sungrez 5 months ago
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