An opportunity cost is:
A) the difference in total costs which results from selecting one alternative instead of another.
B) the benefit forgone by selecting one alternative instead of another.
C) a cost which may be saved by not adopting an alternative.
D) a cost which may be shifted to the future with little or no effect on current operations.

Question

Quizplus · Accepted Answer

An opportunity cost refers to the benefit that could have been gained from selecting the next best alternative, which is forgone when a particular alternative is chosen. Therefore, option B is the correct answer. Option A refers to the concept of differential costs, Option C is about savings, and Option D is about deferred costs.

An Opportunity Cost Is