How are trade-offs and opportunity costs different? a trade-off can be put on a decision-making grid, but an opportunity cost cannot. a trade-off is the most expensive opportunity cost. it is more important to be aware of the trade-off when deciding something. the opportunity cost is the most desirable trade-off?

Question

Khloe Lewis

Business

14 March, 02:22

How are trade-offs and opportunity costs different? a trade-off can be put on a decision-making grid, but an opportunity cost cannot. a trade-off is the most expensive opportunity cost. it is more important to be aware of the trade-off when deciding something. the opportunity cost is the most desirable trade-off?

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Lucas Harmon · Answer 1

Answer: The opportunity cost is the most desirable trade-off.

Explanation: Trade-offs refer to the choosing decisions that an individual faces when choosing between two-goods or making any other economic decision. For instance, a graduate may face a trade-off between choosing a job or starting up his own business.

While, opportunity cost is simply the cost of the lost alternative. For example, if the graduate chooses to start a business then his opportunity cost is the salary foregone from going for a job.

Thus, when deciding on which option to choose (trade-off) we always look at the option which has a lower opportunity cost. So we can say that they are the most desirable trade-offs.

Adonis · Answer 2

the opportunity cost is the most desirable trade-off

Explanation:

A trade off is the reasoning that we are loosing something else whenever we choose something, for example if you decide to eat a sub for lunch, you loose the opportunity of having pizza for lunch, the opportunity cost is when from the trade off you get the best option possible, like winning the trade off. That is why the correct option would be: the opportunity cost is the most desirable trade-off