It focuses on the value of the next highest valued

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It focuses on the value of the next highest valued alternative use of that resource, nonetheless, opportunity costs can have a negative impact in the healthcare industry if scarce services and resources are wasted or do not produce large marginal benefits (Henderson, 2018). Making choices is dependent on the demand of the product by consumers. The law of demand recognizes the inverse relationship between the amount of a product that a person will purchase and the sacrifice required to obtain it (Henderson, 2018). According to the law of demand, if the price of an item is high, the item is purchased less, and when the price is lower, more is purchased. The economic principles of trade, choice, opportunity costs, scarcity, and the law of demand are quite complex and can produce both positive and negative results. To begin, these economic principles can have a negative impact if a bad or ill-informed choice is made. For instance, an individual may be told that their healthcare service will be fully covered by insurance so they decide to proceed with the service but they are later told that it is only partially covered. The patient made the choice to receive the service using inaccurate information; the choice may have been different if the appropriate information was provided.
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