ECONOMICS
OPPORTUNITY COST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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economic choice
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opportunity cost
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Either A or B
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None of the above
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Detailed explanation-1: -Opportunity cost is the value of the benefits of the foregone alternative, of the next best alternative that could have been chosen, but was not. Another way to look at it is that “choosing is refusing; ” one choice can only be accepted by refusing another.
Detailed explanation-2: -“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.
Detailed explanation-3: -Every choice has an opportunity cost and opportunity costs affect the choices people make. The opportunity cost of any choice is the value of the best alternative that had to be forgone in making that choice.
Detailed explanation-4: -Implicit costs (also referred to as implied, imputed or notional costs) are the opportunity costs of utilising resources owned by the firm that could be used for other purposes.