1. Briefly describe the concept of an “opportunity cost”
Opportunity cost by choosing to do something, you give up the option of doing something else. FOR INSTANCE, IF YOU PAY A BILL TOO EARLY YOU LOSE THE OPTION OF INVESTING THE MONEY AND EARNING SOME INTEREST INCOME. The loss of income in this case is considered to be the opportunity cost.
Opportunity Cost from you do something
the basic relationship between scarcity and choice.the real cost of output forgone, lost time, pleasure or any other benefit that provides utility should also be considered opportunity costs.