Opportunity cost is_________________?
Correct answer: C. that which we forgo, or give up, when we make a choice or a decision.
- A. the cost incurred in the past before we make a decision about what to do in the future.
- B. a cost that cannot be avoided. regardless of what is done in the future
- C. that which we forgo, or give up, when we make a choice or a decision.
- D. the additional benefit of buying an additional unit of a product
Explanation
Opportunity cost is the value of the next-best alternative sacrificed when a choice is made. Past or unavoidable costs do not change with the decision and therefore are not opportunity costs.
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