The principle of ________ is that the economic cost of using a factor of production is the alternative use of that factor that is given up.
A)marginal cost
B)opportunity cost
C)normative economics
D)entrepreneurship

Question

Quizplus · Accepted Answer

The principle described in the question is known as the principle of opportunity cost. The concept of opportunity cost is important in understanding the economic decisions made by individuals and firms. It refers to the cost of the next best alternative that must be forgone in order to pursue a certain action. Therefore, the best choice for this question is option B, opportunity cost.

The Principle of ________ Is That the Economic Cost of Using