Question

opportunity cost: producers and consumers. which statements demonstrate the meaning of opportunity cost for producers and consumers? choose three correct answers. when deciding to produce or purchase one item, another opportunity must be given up. if producers can only produce one item, they must decide which item to produce based on profit. consumers and producers are not limited by scarcity of resources or time. consumers are limited by their resources, and must give up the chance to purchase one item in order to buy another. the only factor influencing opportunity cost is personal opinion.

Explanation:

Opportunity cost is the value of the next - best alternative forgone. Producers and consumers face scarcity of resources and time. When making a choice (producing or purchasing), they give up other opportunities. Producers decide what to produce based on profit when resources are limited. Consumers are also resource - constrained and must make trade - offs.

Answer:

1. When deciding to produce or purchase one item, another opportunity must be given up.
2. If producers can only produce one item, they must decide which item to produce based on profit.
3. Consumers are limited by their resources, and must give up the chance to purchase one item in order to buy another.