Opportunity costs exist because
A) using resources for one activity means that their use elsewhere must be given up.
B) sellers are unwilling to give up their product without a price.
C) there are opportunities to find ways to reduce costs.
D) buyers always have an opportunity to go to another seller.

Question

Quizplus · Accepted Answer

Opportunity costs exist because resources are scarce and using them for one activity means that their use elsewhere must be given up. This means that there is a cost associated with every choice made because the next best alternative is forgone. This cost is known as the opportunity cost.

Opportunity Costs Exist Because