Which of the following best describes the financial loss involved in choosing a less profitable option?

Question

Quizplus · Accepted Answer

The financial loss involved in choosing a less profitable option is known as opportunity cost. Opportunity cost refers to the value of the next best alternative that must be forgone in order to pursue a certain action. For example, if a company chooses to invest in a less profitable project instead of a more profitable one, the opportunity cost would be the potential earnings that could have been gained from the more profitable project. Therefore, option C is the best choice as it specifically addresses the financial loss involved in this situation.

Which of the Following Best Describes the Financial Loss Involved