When a decision is made to undertake a particular course of action,its opportunity cost
A) is either zero or irrelevant.
B) disappears if the course of action is chosen voluntarily.
C) is measured by the amount of gain from the course of action.
D) may be computed by adding the gain from that action to the gains possible from alternate actions.
E) is that which is made impossible by the course of action.

Question

Quizplus · Accepted Answer

Opportunity cost refers to the value of the next best alternative that is forgone as a result of making a decision. It is essentially what is sacrificed or made impossible by choosing one option over another.

When a Decision Is Made to Undertake a Particular Course