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Scarcity and Opportunity
Scarcity and Opportunity
For example, suppose you have $10 and you can either buy a
pizza or a book. If you choose to buy the pizza, the
opportunity cost of your choice is the book that you could
have bought instead. The book represents the value of the
next best alternative that you gave up. Similarly, if you choose
to buy the book, the opportunity cost of your choice is the
pizza that you could have enjoyed instead.