The opportunity cost of producing good A is defined to be
A)the money cost of the factors of production used in good A.
B)the retail price of good A.
C)what must be sacrificed of other goods to get an additional unit of good A.
D)the cost of having to get by using something else in place of good A.
E)the cheapest method of producing good A.

Question

Quizplus · Accepted Answer

Opportunity cost is the cost of sacrificing other goods to produce more of a particular good. Therefore, C is the correct answer as it defines the opportunity cost accurately. A, B, D and E are incorrect as they do not accurately define the concept of opportunity cost.

The Opportunity Cost of Producing Good a Is Defined to Be