An opportunity cost is ________.
A) the additional costs generated by a proposed alternative
B) the difference in total cost between two alternatives
C) a cash disbursement in the future
D) the maximum available benefit foregone by using a resource for a particular purpose instead of the best alternative use

Question

Quizplus · Accepted Answer

An opportunity cost is the next best alternative foregone when a decision is made. It's the value of the highest foregone alternative, and that's why D is the correct answer.

An Opportunity Cost Is ________