Opportunity Cost:

Question

Opportunity Cost:

Quizplus · Accepted Answer

Opportunity cost is the value of the next best alternative that you have to give up to pursue a certain action or decision. It includes both explicit and implicit costs, which means that it includes any opportunity that you have to give up in order to choose a particular option. Option A is incorrect because opportunity cost includes both explicit and implicit costs. Option C is incorrect because opportunity cost can be expressed in monetary terms. Option D is incorrect because the wages lost from working would be a part of the opportunity cost of taking a vacation.