Economists measure opportunity cost
A) only when it is on the margin.
B) as the highest-valued alternative forgone.
C) as the sum of all forgone opportunities.
D) in time.
E) as equal to the sum of all the sunk costs.

Question

Quizplus · Accepted Answer

Opportunity cost is defined as the highest-valued alternative forgone. It represents the cost of choosing one option over another by forgoing the benefits of the alternative. Economists measure opportunity cost in this way, focusing on the next best alternative that was not chosen.

Economists Measure Opportunity Cost