The highest valued alternative that must be given up in order to choose an action is called its
A) opportunity cost.
B) utility.
C) scarcity.
D) ceteris paribus.

Question

Quizplus · Accepted Answer

Opportunity cost is the highest valued alternative that must be given up in order to choose an action. This is important to consider when making decisions because it helps individuals and businesses weigh the benefits and drawbacks of each option and make an informed choice that maximizes their utility.

The Highest Valued Alternative That Must Be Given Up in Order