The sacrifice involved when you choose a particular course of action is called the?
Correct answer: B. Opportunity cost
- A. Alternative
- B. Opportunity cost
- C. Consumer cost
- D. Producer cost
Explanation
Opportunity cost is the value of the next-best alternative sacrificed when a choice is made. It applies because scarce resources require one option to be given up for another.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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