Which of the following statements about opportunity costs is true?
A) Opportunity costs are avoidable costs.
B) Opportunity costs are not relevant in decision making.
C) Opportunity costs are the costs of forgoing benefits that would be available if the resources had been used in the next best alternative.
D) All of the statements are true.

Question

Quizplus · Accepted Answer

Opportunity costs are the costs of forgoing benefits that would be available if the resources had been used in the next best alternative. They are not avoidable costs and are crucial in decision making, as they represent the benefits that could be obtained from the foregone alternative. Therefore, option C is the correct statement. Options A and B are incorrect. Option D is incorrect because not all the statements are true.

Which of the Following Statements About Opportunity Costs Is True