Opportunity cost is
A) the combined value of all the alternatives not selected.
B) the same thing as the money price of a good.
C) the value of the next best alternative which was given up.
D) based on the intrinsic value of the good itself.

Question

Quizplus · Accepted Answer

Opportunity cost refers to the value of the next best alternative given up when making a decision. It is not based on the intrinsic value of the good itself, nor is it the same as the money price of a good. It is also not simply the combined value of all the alternatives not selected, as opportunity cost specifically refers to the value of the next best alternative.

Opportunity Cost Is