ENTREPRENEURIAL OPERATIONS
CHAPTER 7 ENTREPRENEURIAL LEADERSHIP AND MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Opportunity cost is defined as:
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the next best alternative
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the initial cost of an investment
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the money spent on the choice made
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the average cost of a new idea.
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Explanation:
Detailed explanation-1: -Opportunity cost is defined as the cost of the next best alternative foregone. It represents the sacrifices that people must make due to the scarcity of resources.
Detailed explanation-2: -Opportunity cost refers to what you have to give up to buy what you want in terms of other goods or services. When economists use the word “cost, ‘’ we usually mean opportunity cost.
Detailed explanation-3: -Concept of Opportunity Cost. Opportunity cost is commonly defined as the next best alternative. Also, known as the alternative cost, it is the loss of gain which could have been gained if another alternative was chosen.
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