Which of the following best defines an opportunity cost?
A) The difference in total costs from selecting one alternative instead of another.
B) The benefit forgone by selecting one alternative instead of another.
C) A cost that may be saved by NOT adopting an alternative.
D) A cost that may be shifted to the future with little or no effect on current operations.

Question

Quizplus · Accepted Answer

Opportunity cost refers to the benefit that is given up or forgone when selecting one alternative over another. It is not the difference in total costs between two alternatives (A), nor is it a cost that may be saved by not adopting an alternative (C) or a cost that can be shifted to the future without affecting current operations (D).

Which of the Following Best Defines an Opportunity Cost