Relevance of opportunity cost in allocation of time
Decision regarding the allocation of time involves many trade-off situations. Thus, allocation of time for different alternatives is depends upon its opportunity cost. People balance their competing alternatives according to the time available to them and its opportunity cost. Simply, in this case, the opportunity cost is arises due to the scarcity of time and increasing number of competing alternatives of people.
Opportunity cost: The best alternative cost that forgoes, or give up, when a choice has to be taken is termed as opportunity cost.
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