The concept of ________ is that the economic cost of using a factor of production is the alternative use of that factor that is given up.
A)marginal cost
B)opportunity cost
C)normative economics
D)entrepreneurship

Question

Quizplus · Accepted Answer

The concept described in the question is that of opportunity cost. Opportunity cost is the cost of the next best alternative that must be given up in order to pursue a certain action or use a certain factor of production. This concept is important in economic decision-making, as it requires individuals and firms to consider the trade-offs involved in making decisions. Marginal cost refers to the additional cost incurred by producing an additional unit of output. Normative economics concerns what ought to be done, rather than what is currently being done. Entrepreneurship is the process of identifying and starting a new business venture.

The Concept of ________ Is That the Economic Cost of Using