ECONOMISTS POINT OUT THAT THE QUALITY OF ANY GIVEN OPTION can not be assessed in isolation from its alternatives. One of the "costs" of any option involves passing up the opportunities that a different option would have afforded. This is referred to as an opportunity cost.
Economists emphasize that the evaluation of an option’s quality is inherently linked to the other choices available. This means that you cannot determine how beneficial one option is without considering the alternatives that are possible. Such comparisons are essential for a comprehensive understanding of decision-making.
One important concept in this context is opportunity cost, which refers to the potential benefits lost when choosing one option over another. This notion highlights that every choice has a cost in terms of missed opportunities, making it crucial to weigh these trade-offs in any decision-making process.
