Society must pay the full opportunity cost of any activity

Question

Quizplus · Accepted Answer

When an activity uses scarce resources, it comes at an opportunity cost - the value of the next best alternative foregone. Society must pay this cost as it represents the true cost of the activity, accounting for the resources used up and the forgone alternative uses. Activities that cause costs to rise or increase revenues do not necessarily imply a need for society to pay the full opportunity cost.

Society Must Pay the Full Opportunity Cost of Any Activity