What is opportunity cost?
A) a benefit that is difficult to accurately trace to a cost object
B) a cost that increases as output increases and decreases as output decreases
C) a cost that decreases as output increases and increases as output decreases
D) a benefit given up or sacrificed when one alternative is chosen over another

Question

Quizplus · Accepted Answer

Opportunity cost refers to the benefit that one gives up or sacrifices when choosing one alternative over another. It is the cost of opportunities forgone. Therefore, the best choice is to consider the opportunity cost in decision making, and choose the alternative that provides the most significant benefit after taking into account the opportunity cost associated with it.

What Is Opportunity Cost