Opportunity cost can best be defined as
A) the interest cost of financing a business loan at the bank.
B) the value of all of the alternatives sacrificed.
C) the value of the next-highest-ranked alternative.
D) There is no real definition for opportunity cost.

Question

Quizplus · Accepted Answer

Opportunity cost refers to the value of the next-best alternative that must be given up in order to pursue a certain action. Therefore, the value of the next-highest-ranked alternative is the best definition for opportunity cost.

Opportunity Cost Can Best Be Defined as