Question

Ethan received a gift card and was considering three options: digital camera, cell phone, and video games. After carefully thinking about it, Ethan narrowed his decision down to the digital camera and the cell phone. Finally, Ethan chose the cell phone. In three to five sentences, define opportunity cost and trade-off and then explain the opportunity cost and trade-off of Ethan's decision.

Answer 1

Please do not copy-paste my response.

Opportunity cost happens when you make a choice. It's the loss you take when you make a choice. For example, if you choose to buy something, your opportunity cost is losing the money and the opportunity to buy something else. A trade-off is a situation like this one, where making a choice means losing out on other choices.

Try to apply this knowledge to describe how opportunity cost and trade-off apply to Ethan's decision.