ECONOMICS

Detailed explanation-1: -An opportunity cost is the potential benefit obtained by using resources in an alternative course of action. It is always better to sell now rather than process further because of the time value of money.

Detailed explanation-2: -It is the opportunity cost in which the potential benefit is obtained by following an alternative course of action.

Detailed explanation-3: -Opportunity costs represent the potential benefits that an individual, investor, or business misses out on when choosing one alternative over another. Because opportunity costs are unseen by definition, they can be easily overlooked.

Detailed explanation-4: -“Opportunity cost is the value of the next-best alternative when a decision is made; it’s what is given up, ” explains Andrea Caceres-Santamaria, senior economic education specialist at the St. Louis Fed, in a recent Page One Economics: Money and Missed Opportunities.

Detailed explanation-5: -Answer and Explanation: Of the given statements about opportunity costs, (a) III only is TRUE. I. The opportunity cost of a given action is equal to the value foregone of all feasible alternative actions.