The real opportunity cost of producing product X is the amounts of products Y, Z, and so forth, that might have been produced if resources had not been used to produce X.

Question

Quizplus · Accepted Answer

Opportunity cost refers to the benefits that are missed or foregone when choosing one alternative over another. Thus, the real opportunity cost of producing product X is indeed the amounts of other products (like Y, Z, etc.) that could have been produced using the same resources if they had not been allocated to the production of X.

The Real Opportunity Cost of Producing Product X Is the Amounts