Determinant factor that makes us choose among

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determinant factor that makes us choose among alternatives is the limitation of resources thus making it impossible to satisfy the many wants all at the same time. Opportunity cost is the value of next best alternative forgone. Individuals and corporations will always attempt to minimize opportunity costs. We all have to make choices and prioritize our needs. This means we will constantly have to keep in mind the opportunity cost – whilst trying to minimize it as much as possible. Economics also deals with economic choices and decisions of individuals, firms and nations make. The adage, "There is no such thing as a free lunch," is used to illustrate the principle that people face trade-offs to make economic decisions.Trade-offs force the society to make economic choices when deciding what goods and services should be produced and who will receive the goods and services once they are made available. “Because people face trade- offs, making decisions requires comparing the costs and benefits of alternative courses of action.” (Mankiw, 2015, pg. 5). In addition, a trade off usually involves the individual or company to make a compromise. For
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