Question

Accountants normally measure opportunity cost as the blank​ value of the available alternatives.

Answer 1

Opportunity cost measures cost by what we forgo in exchange. Sometimes we can measure opportunity cost in money, but it is often useful to consider time as well, or to measure it in terms of the actual resources that we must forfeit.

Step-by-step explanation:

Opportunity cost measures cost by what we forgo in exchange. Sometimes we can measure opportunity cost in money, but it is often useful to consider time as well, or to measure it in terms of the actual resources that we must forfeit.

For example, if a student decides to spend their time studying for an exam instead of going out with friends, the opportunity cost is the lost leisure time and potential enjoyment with friends. On the other hand, if a business decides to invest in new equipment instead of hiring more employees, the opportunity cost is the lost potential labor.