An example to explain the difference between trade-offs and opportunity costs.

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Business

Karlee Ferguson

20 February, 22:16

An example to explain the difference between trade-offs and opportunity costs.

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Rebecca · Answer 1

The difference between trade off and opportunity cost can be illustrated from an example of not going to school can be taken.

Explanation:

For instance, Whenever a student does not go to school for any reason (Reason A), he misses the school. The sacrifice of going to school for any other reason is called trade off. Trade off is sacrifice one opportunity for another. However, in this instance, missing school is opportunity cost. It is the thing you sacrifice or do not choose. That means is if you miss school to attend your brother's marriage then it is your trade off to enjoy at your brother's marriage at opportunity cost of missing school.