Question on: JAMB Economics - 2023
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Real cost is
Alternative commodities forgone
Amount of money spent on goods and services
Cost of goods and services
True cost
Real Cost is typically associated with the alternative commodities forgone, which is the essence of opportunity cost.
It represents the value of the next best alternative that must be sacrificed when a choice is made. Â
Cost of goods and services, on the other hand, refers more to the actual monetary or resource expenses involved in producing a good or service, not considering the trade-off with alternative uses.
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