Which of the following statements about the concept of opportunity cost is true?
A)The opportunity cost of a decision only includes monetary outlays.
B)The opportunity cost of a decision is the next best foregone alternative.
C)Some decisions have zero opportunity cost.
D)The opportunity cost of a college education is measured by the payments for tuition and books.

Question

Quizplus · Accepted Answer

Opportunity cost refers to the value of the next best alternative that must be forgone in order to pursue a certain action. It includes both monetary and non-monetary costs, such as time and effort. Therefore, option A and D are incorrect. Option C is also incorrect as every decision has an opportunity cost.

Which of the Following Statements About the Concept of Opportunity