Opportunity cost is best defined as Select one: a

Economics Aug 14, 2020

Opportunity cost is best defined as

Select one:

a. the amount given up when choosing one activity over the next best alternative.

b. a profit that is greater than the one currently being made.

c. money spent on an activity that could be used in another alternative.

d. the amount given up when choosing one activity over all other alternatives.

Expert Solution

Opportunity cost shows the benefits given up if the other alterntive would have been chosen at place of current activity. The correct option is A "the amount given up when choosing one activity over the next best alternative".

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