Question

Opportunity cost is defined as the: a. ​value of all alternatives not chosen. b. ​difference between the benefits from a choice and the benefits from the next best alternative. c. ​value of the best alternative not chosen. d. difference between the benefits from a choice and the costs of that choice. e. ​dollar cost of what is purchased.

Answer 1

Answer:

The correct answer is letter "C": value of the best alternative not chosen

Explanation:

Opportunity costs represent the return of the option chosen compared to the options that were forgone. It can also be described as the return of the next best available option after having selected one. Opportunity costs help individuals to find out what they "left on the table" after taking a certain decision.