Opportunity cost is defined as
A) the value of the next-best alternative that must be sacrificed to attain a want.
B) the least-costly means to produce output.
C) the value of the output currently received by an individual or a corporation.
D) the return from a given unit of labor.

Question

Quizplus · Accepted Answer

Opportunity cost is all about the value of the next-best alternative that must be sacrificed to attain a want. Therefore, choice A is the correct answer. Choice B talks about least-costly means to produce output, which is more related to production efficiency. Choice C talks about the value of output currently received, which also is not related to opportunity cost. Choice D talks about the return from a given unit of labor, which is more related to productivity measurement.

Opportunity Cost Is Defined as