Question

The overall sacrifice a consumer makes to acquire a product or service is known as.

A) Opportunity cost
B) Marginal cost
C) Fixed cost
D) Variable cost

Answer 1

Opportunity cost is the overall sacrifice a consumer makes to acquire a product or service by giving up the next best alternative.

Step-by-step explanation:

The overall sacrifice a consumer makes to acquire a product or service is known as opportunity cost. Opportunity cost is the value of the next best alternative that is forgone when making a decision. It represents the tradeoff between different choices and the cost of what is given up to obtain something else.

For example, if a consumer chooses to buy a new phone, the opportunity cost would be the other items they could have purchased with that money, such as a laptop or a vacation.