Which of the following is the best definition of opportunity cost?

Question

Quizplus · Accepted Answer

Opportunity cost refers to the value of the next-best alternative that was not chosen because something else was chosen. In other words, it is the cost of forgoing one option in favor of another. Option A is broad and doesn't specifically refer to the cost of choosing one option over others. Option C includes a multiplication that is not necessary for defining opportunity cost. Option D is incorrect as it suggests that the cost is related to taking opportunistic choices rather than forgoing other alternatives. Option E is a clear statement that none of the provided options are appropriate.

Which of the Following Is the Best Definition of Opportunity