Opportunity cost of an action is
A)the highest- valued alternative forgone.
B)the best choice that can be made.
C)the absolute cost.
D)the comparative cost.
E)the money cost.

Question

Quizplus · Accepted Answer

Opportunity cost is the highest valued alternative forgone, which means it is the next best alternative that one has to give up in order to pursue a certain action or decision. Therefore, the best choice is the option with the lowest opportunity cost, which means the one that gives up the least valuable alternative.

Opportunity Cost of an Action Is