The opportunity cost of producing a particular good refers to:
A) how much of something else must be given up to produce one additional unit of the good.
B) how much of a good can be produced with the existing technology and resources.
C) the total cost of production, including wages, for all units of the good.
D) the marginal cost of production in order to produce one additional unit of the good.

Question

Quizplus · Accepted Answer

Opportunity cost refers to the value of the next best alternative that must be given up in order to pursue a certain action. In the case of producing a particular good, the opportunity cost is the amount of resources and efforts that must be sacrificed in producing one additional unit of the good, which could otherwise be directed towards producing something else. Therefore, option A is the correct answer.

The Opportunity Cost of Producing a Particular Good Refers To