Opportunity cost is defined as the value of the best alternative forgone in making any choice. Therefore, the best choice is always the one that provides the greatest benefit or utility relative to its opportunity cost. By considering the opportunity cost of each option, we can determine which choice is the most valuable or efficient.

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Opportunity Cost Is

Question 44

Multiple Choice

Opportunity cost is:

A) zero for the use of a free combo meal offer.
B) the dollar payment for a product.
C) the benefit derived from a product.
D) the value of the best alternative forgone in making any choice.

Correct Answer: