Opportunity cost is
A) the contribution of the best alternative that is excluded from consideration.
B) the same as outlay cost.
C) never relevant to a decision.
D) always an experimental cost.

Question

Quizplus · Accepted Answer

Opportunity cost is the cost of the best alternative that must be given up in order to pursue a certain action or decision. Therefore, option A is the best choice as it accurately defines opportunity cost. Option B is incorrect as outlay cost refers to the actual cost spent on something, while option C is incorrect as opportunity cost is always relevant to decision-making. Option D is incorrect as experimental cost refers to the cost incurred in conducting an experiment, which is unrelated to opportunity cost.

Opportunity Cost Is