The opportunity cost of an action is:
A)the value of the best foregone alternative.
B)the difference between the benefits that result and the expenses incurred as a result of the action.
C)the same as the expected benefit of the action.
D)the same for everyone who undertakes the action.

Question

The opportunity cost of an action is:
A)​the value of the best foregone alternative.
B)​the difference between the benefits that result and the expenses incurred as a result of the action.
C)​the same as the expected benefit of the action.
D)​the same for everyone who undertakes the action.

Quizplus · Accepted Answer

Opportunity cost is the value of the best foregone alternative, meaning the cost of choosing one alternative is the benefit that could have been gained from the next best alternative. Thus, option A is the best choice as it defines the opportunity cost accurately.

The Opportunity Cost of an Action Is