The opportunity cost of any factor of production is
A)its accounting cost.
B)the money actually paid to the factors of production.
C)the benefit forgone by not using it in its worst alternative.
D)the benefit forgone by not using it in its best alternative.
E)its explicit cost.

Question

Quizplus · Accepted Answer

The opportunity cost of any factor of production is the benefit forgone by not using it in its best alternative. This refers to the value of the next best alternative that must be given up in order to obtain the current option.

The Opportunity Cost of Any Factor of Production Is