Question

Opportunity cost is

a. the same thing as the money price of a good.
b. the value of the next best alternative which was given up.
c. the combined value of all the alternatives not selected.
d. based on the intrinsic value of the good itself

Answer 1

B. It is the opportunity cost of the best alternative that was not done or that was abandoned. In economics, this means the cost of the investment and the value of that opportunity. It refers to the value discarded by the realization of the same and the non-investment.