Module 2 Assignment

Respond to the question prompt below:

When most people want to know the cost of an item or a service, they look for a price tag. When economists want to determine cost, they go one step further. They use the idea of opportunity cost.  Explain the concept of opportunity cost and illustrate with an example.

Instructions

Respond to the question prompt by submitting your typed response in no more than a one-page double spaced document in 12 pt, Times New Roman. Your  response should be submitted by the deadline. This response will be graded with the writing rubric. (instructional faculty should edit this section to fit the desired expectation)

SLOS

This assignment addresses the following outcomes:

• Course SLO1: Identify the basic economic principles that serve as the foundation of economic analysis
• Course SLO 2: Understand the interaction of supply and demand in determining prices and the role of prices in coordinating economic activity
• Course SLO 4: Explain how externalities affect the efficiency of markets, and what can be done to improve the efficiency of markets in which externalities exist
  
• Module SLO 2: Explain opportunity sets and opportunity costs