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Bastiat's theory of opportunity cost is instrumental in which branch of economics?

  • Behavioral economics

  • Macroeconomics

  • Microeconomics

  • Environmental economics

Answer

In Microeconomics, Bastiat's theory of opportunity cost explores how individuals and businesses make choices in a world of limited resources. It asserts that the true cost of any choice is not merely its monetary price, but also the value of the next best alternative that was foregone. Understanding opportunity costs allows for informed decision-making and efficient allocation of scarce resources, making this theory a fundamental concept in microeconomic analysis.
The World of Frédéric Bastiat: A Classical Liberal Legacy Challenge

The World of Frédéric Bastiat: A Classical Liberal Legacy Challenge

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