Optimal decisions are made based upon the concept of opportunity cost.

Question

Quizplus · Accepted Answer

Optimal decisions involve weighing the benefits and costs of alternative options, including the opportunity cost of choosing one option over another. The opportunity cost is the value of the next best alternative that must be foregone in order to pursue a certain action. By considering the opportunity cost, decision-makers can make choices that maximize their overall satisfaction or benefit.

Optimal Decisions Are Made Based Upon the Concept of Opportunity