Opportunity cost can be best defined as
A)all sunk costs.
B)the value of the best alternative given up when making a choice.
C)the explicit cost of an activity.
D)the cost of making one additional unit.
E)the cost of finding profit-making opportunities.

Question

Quizplus · Accepted Answer

Opportunity cost refers to the value of the best alternative forgone when making a decision, which means the benefits of the next best alternative or opportunity. The other options do not accurately reflect the definition of opportunity cost.

Opportunity Cost Can Be Best Defined as