The BEST measure of the opportunity cost of any choice is:
A)the monetary cost of that choice.
B)whatever you have given up to make that choice,even if no monetary costs are involved.
C)the cost associated with not taking full advantage of the opportunity offered by that choice.
D)your hourly wage.

Question

Quizplus · Accepted Answer

Opportunity cost refers to the value of the next best alternative that must be given up in order to pursue a certain action. This means that it includes all costs, both direct and indirect, that are foregone as a result of choosing a particular option. While monetary costs are certainly an important consideration, they do not always capture the full opportunity cost of a decision. Therefore, option B is the best measure of opportunity cost as it encompasses all potential costs, including non-monetary ones.

The BEST Measure of the Opportunity Cost of Any Choice