A/An _____ is defined as the cost of the next best alternative.

Question

Quizplus · Accepted Answer

Opportunity cost is the cost of the next best alternative that is forgone in order to pursue a certain action or decision. It is important in decision-making and understanding the true cost of a choice. The other options, such as operating cost, purchase price, net present value, and usage cost, may be factors to consider in determining opportunity cost but do not provide the same definition or relevance as opportunity cost itself.

A/An _____ Is Defined as the Cost of the Next