The notion of opportunity cost is best defined as:
A)the monetary price of any productive resource
B)the amount of labour that must be used to produce one unit of any product
C)the monetary price of any product
D)the utility that could have been gained by choosing an action's best alternative
E)the number of units of a product that are available to be purchased

Question

Quizplus · Accepted Answer

Opportunity cost is the value of the next-best alternative forgone when making a decision. It refers to the benefits that could have been received by taking an alternative action. Therefore, option D is the correct definition of opportunity cost.

The Notion of Opportunity Cost Is Best Defined As