In the case of freely traded resources, opportunity cost is the:
A) book value
B) market value
C) historical value
D) none of the above

Question

Quizplus · Accepted Answer

Opportunity cost is based on the market value of a resource in a freely traded market. It is the value of the next best alternative that must be given up in order to obtain the resource. Book value and historical value may not accurately reflect the current market value of the resource.

In the Case of Freely Traded Resources, Opportunity Cost Is