Title: 6 Top-Rated Difference between Trade-off and Opportunity Cost - Core Differences
Headings: 6 Top-Rated Difference between Trade-off and Opportunity Cost
6 Top-Rated Difference between Trade-off and Opportunity Cost
What Is Trade-off?
Factors that Influence Trade-off:
What Is Opportunity Cost?
Factors that Influence Opportunity Cost
Comparison Chart: Trade-off Vs Opportunity Cost
Core Difference between Trade-off and Opportunity Cost
Comparison Video
UNIT 1A 3 Trade Off and Opportunity Cost
Summary

Content: What Is Trade-off? The trade-off is an economical term where an individual sacrifice one thing in order to get another one. An individual is required to make a comparison among things before making a decision. This common in a situation where there limited resources. Factors that Influence Trade-off: Level of risk
Different path
Social cost
Level of complexity
What Is Opportunity Cost? Opportunity cost is an economic term that refers to choosing one of the two available choices and missing on the benefits that would have been derived from the alternative opportunity given up. Factors that Influence Opportunity Cost
Consumer choice
Competitive advantage
Time management
Career choice
Production possibilities
Cost of capital
Comparison Chart: Trade-off Vs Opportunity Cost
Basic Terms
Trade-off
Opportunity Cost
Meaning
It is the exchange of one thing in order to get something else
Refers to making a choice among the best two alternative things and choose the best-fit item
Core Difference
It is the process of sacrificing a belonging completely to get what you want
It is the process of choosing the best alternative
Importance
Help in getting what you demanded at the expenses of the other belonging
Help in making the best choice from the available alternatives
Relation to other choices
Has an indirect relation with what was sacrificed
Has a close relation from what was left
Calculation Formula
Has no formula for calculating the trade-off
Opportunity Cost= return of the most beneficial option – the return of the chosen option. Core Difference between Trade-off and Opportunity Cost
Opportunity cost refers to the next available opportunity whereas trade-off refers to two opportunities or more choices
The trade-off is sacrificing for something else whereas opportunity is choosing the best alternative available
Opportunity cost refers to the gain which could have been lost due to wrong decision whereas trade-off has nothing to do with gain or loss
The benefit of opportunity cost is making a good decision whereas trade-off help to get what was demanded
The loss incurred due to opportunity cost are taken into consideration while trade-off has nothing to do with the loss
Opportunity cost can easily be calculated due to the available formula, unlike trade-off.