The opportunity cost of an action is equal to:
A)only the monetary payment the action required.
B)the total time spent by all parties in carrying out the action.
C)the highest valued opportunity that must be sacrificed in order to take the action.
D)the value of all of the alternative actions that could have been taken.

Question

The opportunity cost of an action is equal to:
A)​only the monetary payment the action required.
B)​the total time spent by all parties in carrying out the action.
C)​the highest valued opportunity that must be sacrificed in order to take the action.
D)​the value of all of the alternative actions that could have been taken.

Quizplus · Accepted Answer

Opportunity cost is the value of the next best alternative that must be given up in order to pursue a certain action. This includes both monetary and non-monetary costs. Choice C accurately describes this concept.

The Opportunity Cost of an Action Is Equal To