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Opportunity Cost

Opportunity cost describes the cost of a good, service or action relative to others. It is the next best alternative that you could have had if you did not choose the first.  For example, in an economy with only two goods A and B, if you choose good A, the opportunity cost is good B.

 

Anthony Carilli - The Economic Way of Thinking

 

Paul Cwik - The Foundational Difference Between Austrian Economics and the Mainstream

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It's been 40 years since F. A. Hayek received his Nobel Prize. His insights, particularly on the distribution of knowledge and the impossibility of economic planning, remain hugely important today. In this issue, we look back on the influence of his work. Max Borders and Craig Biddle debate whether liberty must be defended from one absolute foundation, further reflections on Scottish secession, and how technology is already changing our world for the better--including how robots, despite the unease they cause, will only accelerate this process.
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