Which of the following statements best describes opportunity costs?
A) The opportunity cost of attending college is the same for all students at the same university but may differ among students at different universities.
B) Some economic decisions have zero opportunity cost.
C) The opportunity cost of a decision is the value of the best forgone alternative.
D) The opportunity cost of a decision is equal to the explicit cost in monetary terms.

Question

Quizplus · Accepted Answer

Opportunity cost is the value of the best forgone alternative, meaning what one gives up in order to pursue a certain choice. Therefore, option C is the correct answer as it provides the most accurate definition of opportunity cost. Option A is incorrect as opportunity cost can differ among students attending the same university based on their individual circumstances. Option B is incorrect as every economic decision has an opportunity cost. Option D is incorrect as the explicit cost may not necessarily reflect the opportunity cost.

Which of the Following Statements Best Describes Opportunity Costs