According to economists, which of the following statements best describes the opportunity cost of a good?
A) It is identical to the good's accounting cost.
B) It is determined strictly by the explicit costs of producing the good.
C) It is determined strictly by the implicit costs of producing the good.
D) It is the value of the best alternative use of resources sacrificed to produce or acquire it.

Question

Quizplus · Accepted Answer

The opportunity cost of a good is the value of the best alternative use of resources sacrificed to produce or acquire it. This includes both the explicit (monetary) costs and the implicit (non-monetary) costs, such as the foregone opportunity to use those resources in another way. Thus, options A, B, and C are incorrect as they do not fully capture the concept of opportunity cost.

According to Economists, Which of the Following Statements Best Describes