The opportunity cost of a good is:

Question

Quizplus · Accepted Answer

The opportunity cost of a good is the value of the next best alternative that is given up to acquire the good. Therefore, the correct choice is D. A is incorrect because economic recession does not affect the concept of opportunity cost, but may affect the level of demand or supply of goods. B is incorrect because monetary cost refers only to the amount of money paid to obtain the good, but it does not reflect the opportunity cost. C is incorrect because economic booms may affect prices and availability of goods, but it does not affect the concept of opportunity cost.

The Opportunity Cost of a Good Is