An example of the opportunity costs involved with social regulation would be:
A)the monetary costs of hiring administrative assistants to fill out OSHA safety reports.
B)the environmental costs of pollution control required under the Clean Air Act.
C)the monetary costs of laboratory trials required to try out a new drug.
D)the lives that are lost because new drugs are not introduced quickly enough.
E)the monetary cost of manufacturing a life saving drug.

Question

Quizplus · Accepted Answer

Opportunity cost refers to the loss of potential gain from other alternatives when one alternative is chosen. In this case, the opportunity cost is the lives lost due to the delay in introducing new drugs, as resources are allocated to meet regulatory requirements.

An Example of the Opportunity Costs Involved with Social Regulation