The opportunity cost of an action:
A) can be determined by considering both the benefits that flow from as well as the monetary costs incurred as a result of the action.
B) can be determined by adding up the bills incurred as a result of the action.
C) can be objectively determined only by economists.
D) is a subjective valuation that can be determined only by the individual who chooses the action.

Question

Quizplus · Accepted Answer

The opportunity cost of an action is a subjective valuation, reflecting the next best alternative foregone as a result of choosing one option over another. It is determined by the individual making the choice, as it involves personal preferences and valuations of what is being given up.

The Opportunity Cost of an Action