Question

What represents the value of the second-best alternative that a person gives up when making a choice?
A
marginal spending
B. marginal benefit
C. opportunity cost
D. marginal cost

Answer 1

Answer:

c. oportunity cost

Explanation:

Opportunity cost is the value lost as a result of preferring a particular option over the other.  It occurs when an individual has to choose between two alternatives. For example, Jane can either stock 100 crates of soda or 80 packs of water.  If shes chooses 80 boxes of water, the100 crates of soda represent the opportunity cost.