When a country produces more of one good, it must produce less of another good (assuming that resources are finite). The value of the second-best choice-the value of the production that a country gives up in order to produce the first product-represents the _____ of producing the first product.
A) money cost
B) opportunity cost
C) sunk cost
D) differential cost

Question

Quizplus · Accepted Answer

The opportunity cost is the value of the next best alternative that is foregone when a choice is made to produce one good over another.

When a Country Produces More of One Good, It Must