The opportunity cost of any action is: a

Economics Dec 10, 2020

The opportunity cost of any action is:

a. the time required but not the monetary cost.

b. all the possible alternatives forgone.

c. the highest-valued alternative forgone.

d. the monetary cost but not the time required.

Expert Solution

The opportunity cost of any action is (c) the highest-valued alternative forgone. Because people have limited time and money, every decision involves a trade off and the opportunity cost is the cost of the highest alternative that they could have chosen instead of the one they actually chose.

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