CBA-1.A—a. Define opportunity cost. b. Explain the opportunity costs associated with choices. c. Calculate the opportunity costs…

a. Define opportunity cost. b. Explain the opportunity costs associated with choices. c. Calculate the opportunity costs associated with choices.

• Rational agents consider opportunity costs, whether implicit or explicit, when calculating the total economic costs of any decision.
• Total benefits form the metric “utility” for consumers and total revenue for firms.
• Enduring understanding CBA-1: Rational economic decisions require the evaluation of costs and benefits.