The opportunity cost of any factor of production is
A) the benefit forgone by not using it in its best alternative.
B) the benefit forgone by not using it in its worst alternative.
C) the money actually paid to the factors of production.
D) its explicit cost.
E) its accounting cost.

Question

Quizplus · Accepted Answer

Opportunity cost is the benefit forgone by not using a factor of production in its best alternative. This means the value of the next best alternative that is given up when choosing to use a factor of production for a particular purpose.

The Opportunity Cost of Any Factor of Production Is