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In January 2018 the government introduced a scheme giving grants for solar panels for home use - Junior Cycle Business Studies - Question 15 - 2019
Question 15
In January 2018 the government introduced a scheme giving grants for solar panels for home use. Seán and Maureen O'Mahony were considering landscaping their back ga... show full transcript
Worked Solution & Example Answer:In January 2018 the government introduced a scheme giving grants for solar panels for home use - Junior Cycle Business Studies - Question 15 - 2019
Step 1
Explain what is meant by opportunity cost
Answer
Opportunity cost refers to the value of the next best alternative that is foregone when making a decision. In this context, it pertains to the good or service that Seán and Maureen O'Mahony are choosing to forgo—in this case, landscaping their back garden—in order to install solar panels in their home. Thus, the opportunity cost here is the potential benefits and enjoyment they would have gained from landscaping their garden, which they are giving up by opting for solar panels instead.