The potential benefits lost by taking a specific action when two or more alternative choices are available is known as a(n):
A) Out-of-pocket cost.
B) Sunk cost.
C) Alternative cost.
D) Opportunity cost.
E) Differential cost.

Question

Quizplus · Accepted Answer

The potential benefits lost by taking a specific action when two or more alternative choices are available is known as opportunity cost. It is an important concept in decision making and helps individuals when deciding between alternatives.

The Potential Benefits Lost by Taking a Specific Action When