Question

question 5
1 pts
the opportunity cost of buying a good is
the value of the next - best alternative you could have purchased.
irrelevant since you will purchase your highest - valued good.
the sum of values of all the other goods you could have
purchased.
the average of values of all the other goods you could have
purchased.

Explanation:

Opportunity cost is defined as the value of the next - best alternative that is forgone when a choice is made. The second option is wrong because opportunity cost is relevant even when purchasing the highest - valued good as it represents what is given up. The third option is wrong as opportunity cost is not the sum of all other alternatives but the value of the next - best one. The fourth option is wrong as it is not the average of the values of other goods. Only the first option matches the definition of opportunity cost.

Answer:

A. the value of the next - best alternative you could have purchased.