A(n)_________________ cost is the highest valued alternative that must be given up to engage in an activity.
A)economic equity
B)opportunity cost
C)marginal benefit
D)marginal cost

Question

Quizplus · Accepted Answer

Opportunity cost is the cost of the next best alternative foregone. It is a fundamental concept in economics and is used to measure the cost of decision-making. The opportunity cost of an activity is the benefit that could have been gained from the next best alternative. Therefore, option B is the best choice as it defines the concept of opportunity cost.

A(n)_________________ Cost Is the Highest Valued Alternative That Must Be