Title: Explain opportunity cost.
Course: Entrepreneurship (12053-I) > Section: Understanding Basic Economic Principles

Explanation should include

- the concept that opportunity cost is the value of whatever an entrepreneur gives up when he/she makes a decision
- the relationship between opportunity cost and scarcity
- examples of how opportunity cost and scarcity affect entrepreneurs.

Process/Skill Questions:

- How might one explain the concept of opportunity cost? What are some examples?
- Why does scarcity occur?
- How might scarcity be considered the foundation of economics?
- Why must entrepreneurs understand the concept of opportunity cost?
- How can opportunity cost affect entrepreneurial decisions? What are some examples to illustrate this relationship?
- What is one opportunity cost of becoming an entrepreneur?