The opportunity cost of a one-unit increase in an activity
A) is greater than the marginal benefit.
B) is called sunk cost.
C) decreases as you do more of it.
D) is called marginal cost.
E) is measured by what the person is willing to give up to get one more unit of the activity.

Question

Quizplus · Accepted Answer

The opportunity cost of a one-unit increase in an activity is called the marginal cost, which is the cost of foregoing the next best alternative when making a decision.

The Opportunity Cost of a One-Unit Increase in an Activity