What are the opportunity costs to customers with regard to the purchase of entertainment versus necessities an

Question

What are the opportunity costs to customers with regard to the purchase of entertainment versus necessities and essentials?

Answer 1

Well, an opportunity cost is the value of a product forgone to produce or obtain another product. Usually, entertainment items ARE the opportunity costs for purchasing necessities, ant vice versa.

When you buy a new television (entertainment item), your opportunity costs are all of the other things (which could include necessity items or even other entertainment items) that your money could have been spent on, if you didn't buy the TV.

Wikipedia article on "opportunity cost"

http://en.wikipedia.org/wiki/Opportunity...

Hope this helps. Good luck.