Opportunity cost is best defined as the value of
A)all of the other possible options that the decision maker could have chosen.
B)the alternative which the decision maker would choose if more resources were available.
C)what is gained from the alternative which is chosen.
D)resources that are given up to obtain the alternative that is chosen.
E)the next best alternative that the decision forces one to give up.

Question

Quizplus · Accepted Answer

Opportunity cost is the cost of the next best alternative that one has to give up in order to pursue a certain action or decision. This is because resources (such as time, money, and effort) are scarce, and choosing one option means giving up other potential options. Option E best reflects this definition of opportunity cost.

Opportunity Cost Is Best Defined as the Value of