# A popular bakery has only a few ingredients left to make its products. It could bake muffins or...

## Question:

A popular bakery has only a few ingredients left to make its products. It could bake muffins or cookies, but it can't make both. The bakers decide to make cookies for their customers. What is the opportunity cost of their decision?

## Scarcity and Choice:

The social science of economics is based on the condition of scarcity in our world. Humans have unlimited wants but only limited resources to satisfy those wants. Scarcity means that humans much make choices.

## Answer and Explanation: 1

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View this answerWhen humans make choices, they do so based on opportunity cost. The definition of opportunity cost is what you give up when you make a choice. In this...

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Chapter 1 / Lesson 2What is Opportunity Cost? Learn the definition and explore real-life examples of this concept. Also, learn the types of opportunity costs and what they represent.

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