The opportunity cost of any decision option is:
A)The value to the decision maker of the least-best option.
B)The total profit of the best option.
C)The total costs of the least option.
D)The value to the decision maker of the next best option.
E)None of the above.

Question

Quizplus · Accepted Answer

The opportunity cost of any decision option is the value to the decision maker of the next best option. This means that if a decision is made to choose one option, the opportunity cost is the value forgone from not choosing the next best option. Therefore, the correct answer is D.

The Opportunity Cost of Any Decision Option Is