The opportunity cost of choosing an alternative
A) is the value of the highest valued alternative forgone as the result of the choice.
B) includes only the amount of time spent on whatever is chosen.
C) includes only the money cost of the option.
D) is irrelevant for most choices individuals face.

Question

Quizplus · Accepted Answer

The opportunity cost of choosing an alternative is the value of the highest valued alternative forgone as the result of the choice. Therefore, the best choice is the one that has the lowest opportunity cost, or the one where the value of the highest valued alternative forgone is the lowest.

The Opportunity Cost of Choosing an Alternative