ECONOMICS
OPPORTUNITY COST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the time required but not the monetary cost.
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the highest-valued alternative forgone.
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all the possible alternatives forgone.
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the monetary cost but not the time required.
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Detailed explanation-1: -Answer and Explanation: The opportunity cost of any action is (c) the highest-valued alternative forgone. Because people have limited time and money, every decision involves a trade off and the opportunity cost is the cost of the highest alternative that they could have chosen instead of the one they actually chose.
Detailed explanation-2: -The highest-valued alternative that must be forgone when a choice is made is called opportunity cost. It is the cost arising due to not choosing the advantages/ benefits associated with the best alternative choice.
Detailed explanation-3: -The opportunity cost of any given action or decision is typically defined as the value of the forgone alternative action or decision. That is, opportunity cost is the loss of potential gain from other alternatives when one alternative is chosen.
Detailed explanation-4: -An opportunity cost is the highest-valued alternative that must be forgone when a choice is made.
Detailed explanation-5: -Opportunity cost is the highest-valued alternative a person has to give up when making a choice.