The principle of opportunity cost:
A) is only relevant in economics.
B) is more relevant for firms than for individuals.
C) only refers to monetary payments.
D) is applicable to all decision- making.

Question

Quizplus · Accepted Answer

The principle of opportunity cost is applicable to all decision-making. It refers to the concept that for every decision made, there is an associated cost of forgoing other options. This cost may be in terms of time, money or other resources. Therefore, individuals and firms must consider the opportunity cost before making decisions on how to allocate resources.

The Principle of Opportunity Cost