The term opportunity cost refers to
A)The most a consumer is willing to exchange to get an item.
B)The slope of the demand line for a consumer or slope of the supply line for the producer.
C)The minimum price that a producer will accept for a product.
D)All of the choices are correct.

Question

Quizplus · Accepted Answer

Opportunity cost refers to the value of the next best alternative that is given up when a choice is made. In this case, it is the value of the item that the consumer is willing to exchange to get the item they want. It is also the slope of the demand line for a consumer or slope of the supply line for the producer, as this represents the willingness to pay for a good or service. Finally, it is the minimum price that a producer will accept for a product, as this is the price at which they are willing to give up the opportunity to sell the product to someone else.

The Term Opportunity Cost Refers to