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When we talk about rational behavior, we think of a trade-offbetween risk and opportunity cost. That is an entrepreneur may incur additional cost or costs
When we talk about rational behavior, we think of a trade-offbetween risk and opportunity cost. That is an entrepreneur may incur additional cost or costs that could have been savedby using his/her resources for other purposes. Do you think there is a relationship between opportunity cost and forgone or lost alternatives? Ifan entrepreneur is risk taker, which kin of economic resource do you think he/she value most, capital or labor? Why?
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