Economists measure opportunity cost
A) only when it is on the margin.
B) as the best thing given up.
C) as the sum of all forgone opportunities.
D) as the same as marginal benefit.
E) as equal to the sum of all the sunk costs.

Question

Quizplus · Accepted Answer

Opportunity cost is defined as the best option or alternative that must be given up in order to pursue a certain action or decision. It is the value of the next best alternative foregone, and economists measure it as such. Therefore, option B, which states that opportunity cost is measured as the best thing given up, is the best choice.

Economists Measure Opportunity Cost