The opportunity cost of a decision is measured in terms of
A)the price of a new opportunity that arises.
B)sunk cost.
C)the price of the alternative we choose.
D)the next best thing given up.
E)time.

Question

Quizplus · Accepted Answer

Opportunity cost is the value of the next best alternative forgone when making a decision. This means that it is the value of the best alternative option that we give up in order to choose the option we choose. Therefore, the next best thing given up is the correct choice.

The Opportunity Cost of a Decision Is Measured in Terms