The ..... of a decision is the value of the next-best alternative, or what you give up by choosing one alternative over another.

BUSINESS ECONOMICS

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

The ____ of a decision is the value of the next-best alternative, or what you give up by choosing one alternative over another.

A	Trade-off
B	Opportunity Cost
C	Cost-Benefit Analysis
D	Marginal Cost

Explanation:

Detailed explanation-1: -“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-2: -Opportunity cost is a concept in Economics that is defined as those values or benefits that are lost by a business, business owners or organisations when they choose one option or an alternative option over another option, in the course of making business decisions.

Detailed explanation-3: -In microeconomic theory, the opportunity cost of a choice is the value of the best alternative forgone where, given limited resources, a choice needs to be made between several mutually exclusive alternatives.

There is 1 question to complete.

GENERAL KNOWLEDGE

GK

BUSINESS ECONOMICS