The principle of opportunity cost
A) is more relevant for firms than for individuals.
B) only refers to monetary payments.
C) is only relevant in economics.
D) is applicable to all decision-making.

Question

Quizplus · Accepted Answer

The principle of opportunity cost is applicable to all decision-making processes, whether it is for individuals, firms or governments. It refers to the cost of the next best alternative foregone, which could be in terms of money, time, or other resources. This principle helps in making informed choices and evaluating trade-offs in decision-making.

The Principle of Opportunity Cost