The opportunity cost of a purchase is:

Question

Quizplus · Accepted Answer

Opportunity cost is the value of the best alternative that is foregone when a choice is made. In other words, it is the value of the next best alternative choice that is not chosen. Therefore, the opportunity cost of a purchase is the good or service that is given up in order to obtain the purchased good or service. Option A is incorrect as selling price is not necessarily equivalent to opportunity cost. Option B is incorrect as opportunity cost exists even if the good or service satisfies a need, as there is always an alternative that could have been chosen. Option C is incorrect as opportunity cost does not vary based on a person's wealth.

The Opportunity Cost of a Purchase Is