As an individual, how do you make decisions regarding unlimited wants with limited resources?

Economics Dec 10, 2020

Expert Solution

Since the resources given in the question are limited, the decision to fulfill unlimited wants will depend on the needs and opportunity costs. First, the necessary commodity must be consumed on a priority basis. Second, the opportunity cost (when a chosen alternative leads to the loss of a benefit) associated with the consuming of a commodity will depend upon the commodity chosen. For example, how many units of shirts should be given up in order to buy or consume an additional unit of food?

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