Under the opportunity-cost approach, the relevant cost of any alternative is the incremental of the alternative plus the opportunity cost of the profit foregone from choosing the alternative.

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This is a correct statement about the opportunity-cost approach, where the relevant cost of an alternative is the incremental cost plus the value of the best foregone alternative. This approach helps decision-makers to compare the benefits and costs of different alternatives, including the implicit trade-offs involved in choosing one option over another.

Under the Opportunity-Cost Approach, the Relevant Cost of Any Alternative