What is meant by the term 'opportunity costs'?
A) The cost of investigating an opportunity
B) The interest payable on borrowing funds to take up an opportunity
C) The cost of using an asset which has alternative employment
D) The income from using an asset

Question

Quizplus · Accepted Answer

Opportunity costs refer to the benefits that are given up when choosing one option over another. In this context, choice C is the best answer as it refers to the cost of using an asset for one purpose instead of another, or in other words, the benefits that could have been gained by using that asset for its next-best alternative. A, B, and D do not accurately reflect this concept.

What Is Meant by the Term 'Opportunity Costs