The cost associated with foregoing the opportunity to employ a resource in its best alternative use is called:

Question

Quizplus · Accepted Answer

The definition given in the question perfectly aligns with the concept of opportunity cost. It refers to the cost of not choosing the best alternative use of a resource. Sunk costs, avoidable costs, and user cost of capital relate to different concepts and do not fit the description provided in the question.

The Cost Associated with Foregoing the Opportunity to Employ a Resource