The opportunity cost of an option
A) measures the undesirable aspects of the option.
B) includes only the monetary cost of the option.
C) is the highest-valued alternative that must be given up as the result of choosing the option.
D) is objective, and it will be the same for all individuals.

Question

Quizplus · Accepted Answer

Opportunity cost is the value of the next best alternative that is foregone when a decision is made. It is subjective and varies for different individuals based on their preferences and circumstances.

The Opportunity Cost of an Option