When an economy's limited resources are moved into the production of one commodity, the production of a valuable alternative has to be foregone.This most valuable alternative lost is referred to as:
A)the marginal cost.
B)the opportunity cost.
C)the sunk cost.
D)the fixed cost.

Question

Quizplus · Accepted Answer

The term used to describe the most valuable alternative that is foregone when limited resources are used to produce one commodity is opportunity cost. Marginal cost refers to the additional cost incurred in producing one extra unit of a commodity. Sunk cost refers to the cost that has already been incurred and cannot be recovered. Fixed cost refers to the cost that remains constant regardless of the level of production.

When an Economy's Limited Resources Are Moved into the Production