Below are some production possibilities data for the mystical land of Ghandor.

-What is the definition of opportunity cost?
A)The amount of money spent on a good.
B)The value of the next best alternative that is given up as a result of making a particular decision.
C)The value of all the alternatives given up as a result of making a particular decision.
D)The cost incurred in producing a good.

Question

Below are some production possibilities data for the mystical land of Ghandor.
 
-What is the definition of opportunity cost?
A)The amount of money spent on a good. 
B)The value of the next best alternative that is given up as a result of making a particular decision. 
C)The value of all the alternatives given up as a result of making a particular decision. 
D)The cost incurred in producing a good.

Quizplus · Accepted Answer

Opportunity cost refers to the value of the next best alternative that is forgone in order to pursue a certain action or decision. It is not about the money spent (A), the value of all alternatives given up (C), or the production cost (D), but specifically about the value of the single best alternative not chosen.

Below Are Some Production Possibilities Data for the Mystical Land