The opportunity cost of production:
A)is the price of a good.
B)is what you give up to produce the good.
C)decreases as production increases.
D)is what you gain by producing the good.

Question

Quizplus · Accepted Answer

The opportunity cost of production is the cost of the next best alternative forgone. It is the value of the next best alternative that must be given up in order to pursue a certain action, in this case, producing a good. Therefore, the correct answer is B, which states that it is what you give up to produce the good. A, C, and D are incorrect as they do not accurately define the concept of opportunity cost.

The Opportunity Cost of Production