An "opportunity cost" is best described by which of the following?
A)Benefits foregone by choosing a particular alternative course of action
B)Costs that were incurred in the past and cannot be changed
C)The distribution of all products to be sold
D)Expected future costs that differ among alternatives

Question

Quizplus · Accepted Answer

Opportunity cost refers to the benefits that are foregone by choosing one option over another. It is the cost of the next best alternative that must be given up in order to pursue a certain action or decision. Option B refers to sunk costs, option C refers to distribution, and option D refers to expected future costs, none of which accurately describes opportunity cost.

An "Opportunity Cost" Is Best Described by Which of the Following