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

Question

Quizplus · Accepted Answer

Opportunity cost is the value of the next best alternative that is foregone in order to pursue a certain action or decision. It is the best thing given up, hence option C is the correct choice. The other options are incorrect as they do not give the right definition or measure of opportunity cost.

Economists Measure Opportunity Cost