An opportunity cost:
A) exists only for decisions involving expenditures of money.
B) exists because there is only one way money and time can be spent.
C) is equal to the value of what is given up to make a purchase or take an action.
D) accompanies every decision made by individuals and businesses, but not by government because that reflects the wishes of society.

Question

Quizplus · Accepted Answer

Opportunity cost is the value of the next best alternative that is foregone when a decision is made. It's not just about money but also about time, resources, or any other factor that has value. It applies to all decision-makers, including individuals, businesses, and governments.

An Opportunity Cost