Opportunity cost:

Question

Opportunity cost:​

Quizplus · Accepted Answer

Opportunity cost is the value of the best alternative that must be given up in order to pursue a certain action. Therefore, as the value of the best foregone alternative increases, the opportunity cost also increases. This means that D is the correct answer. A is incorrect because opportunity cost is not always related to the dollar price of a good. B is incorrect because the best alternative value could be something other than attending a concert or sporting event. C is incorrect because even if a good is free, there could still be an opportunity cost associated with the time spent obtaining it.

Opportunity Cost:​

Opportunity Cost: