The relevant cost in economic decision-making is the opportunity cost of the resources rather than the outlay of funds required to obtain the resources.

Question

Quizplus · Accepted Answer

The opportunity cost is the value of the next-best alternative foregone, which is not necessarily the same as the outlay of funds required to obtain the resources. Therefore, the relevant cost in economic decision-making is the opportunity cost of the resources.

The Relevant Cost in Economic Decision-Making Is the Opportunity Cost