The opportunity cost of a decision is measured in terms of
A) sunk cost.
B) the next best thing given up.
C) the price of the alternative we choose.
D) time.
E) the price of a new opportunity that arises.

Question

Quizplus · Accepted Answer

Opportunity cost is the next best alternative that is given up when choosing one option over another. It is not related to sunk cost (A), the price of the chosen alternative (C), time (D), or the price of a new opportunity (E).

The Opportunity Cost of a Decision Is Measured in Terms