Opportunity cost can best be defined as the
A)money cost of a good or service.
B)money cost plus interest on money borrowed to buy a good or service.
C)cost of the resources used to produce a good or service.
D)value of the best alternative forgone when the alternative at hand is chosen.

Question

Quizplus · Accepted Answer

Opportunity cost refers to the value of the next best alternative forgone when a decision is made. It is not necessarily a monetary cost, but rather the cost of the foregone opportunity. Therefore, the correct definition of opportunity cost is D, which states that it is the value of the best alternative forgone when the option at hand is chosen.

Opportunity Cost Can Best Be Defined as the