Opportunity cost is best defined as
A) the amount of money that an individual is willing to pay to purchase a good that means a great deal to that person.
B) the amount of money lost by one individual in an exchange process so that another individual might gain.
C) the highest-valued alternative that is forgone when choosing among various alternatives.
D) a situation in which one individual cannot have an absolute advantage over another individual in the production of all goods.

Question

Quizplus · Accepted Answer

Opportunity cost refers to the value of the next best alternative that is given up when making a choice. It represents the benefits an individual, investor, or business misses out on when choosing one alternative over another.

Opportunity Cost Is Best Defined as