Opportunity cost is
A) the intrinsic value of an economic good.
B) the total value of all the alternatives given up when a choice is made.
C) the value of the opportunity selected when a need is satisfied.
D) the value of the next highest ranked alternative that must be sacrificed to obtain a want.

Question

Quizplus · Accepted Answer

Opportunity cost is the value of the next best alternative forgone to undertake the chosen option. Therefore, the best choice is D, which defines opportunity cost as the value of the next highest-ranked alternative that must be sacrificed to obtain a want. Options A, B, and C are incorrect because they do not accurately define opportunity cost.

Opportunity Cost Is