The cost of one thing in terms of the alternative given up is called:
A)Real cost
B)Opportunity cost
C)Production cost
D)Physical cost

Question

Quizplus · Accepted Answer

Opportunity cost refers to the value of the next best alternative that is foregone when a decision is made to choose one option over another. It represents the benefits an individual, investor, or business misses out on when choosing one alternative over another.

The Cost of One Thing in Terms of the Alternative