Trade-offs and Opportunity Cost

What is Trade-offs and Opportunity Cost? Trade-offs are choosing one thing over another, if you choose to invest in paint over pencils, your opportunity cost, is that you can no longer colour with pencils. This is a poor example, so lets look at some real data so we can get a good understanding of what opportunity cost is really about, and for that we need an example. Nails and Hammers LTD. A company, called Nails and Hammers LTD, produces hammers and nails, they have a good reputation, but are not really known, they also manufacture their hammers cheaply and therefore some… Continue reading Trade-offs and Opportunity Cost