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Explain Why a Relative Price Is an Opportunity Cost

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Essay

Explain why a relative price is an opportunity cost.


Definitions:

Opportunity Cost

Neglecting possible gains from other scenarios by focusing on a singular choice.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision, representing the benefits one could have received by taking a different course of action.

Attending College

The act of enrolling and participating in an academic program at a college or university.

Scarce Resources

Resources that are limited in availability and are not sufficient to satisfy all the various ways a society wants to use them.

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