The value of the highest-valued alternative that a person must give up when making a decision is known as the ________ cost.
A) direct
B) benefit's
C) opportunity
D) explicit
E) sunk

Question

Quizplus · Accepted Answer

The value of the highest-valued alternative that a person must give up when making a decision is known as the opportunity cost. Therefore, the best choice is C, which is opportunity cost. The other options do not accurately describe this concept. Direct cost refers to the cost that can be directly attributed to a specific object or activity, while benefit's cost is not a recognized term. Explicit cost refers to the cost that is clearly stated and can be easily identified, and sunk cost refers to the cost that has already been incurred and cannot be recovered.

The Value of the Highest-Valued Alternative That a Person Must