The opportunity cost of an activity means the:

Question

Quizplus · Accepted Answer

The opportunity cost represents the value of the next best alternative that had to be forgone in order to pursue a certain action. Therefore, it is the amount of other things that must be sacrificed in order to engage in the activity. Option A is not correct as the opportunity cost is not necessarily equal to the monetary cost of the activity. Option B is incorrect as it describes the expected benefits and costs, but not the opportunity cost. Option C is incorrect as it only describes the expected gains, but not the trade-offs involved in making a choice.

The Opportunity Cost of an Activity Means The