The opportunity cost of an action is equal to:

Question

Quizplus · Accepted Answer

Opportunity cost is the value of the next best alternative foregone when making a choice. It is not necessarily monetary, but rather the benefit or value that could have been derived from the next best alternative. Option A is incorrect because the monetary expense may not necessarily reflect the opportunity cost. Option B is partially correct, as the time expended on an action is a factor in determining opportunity cost, but it is not the only factor. Option D is incorrect because the benefits received do not necessarily reflect the opportunity cost. Option E is unrelated to the concept of opportunity cost.

The Opportunity Cost of an Action Is Equal To