Question

multiple choice question
the ______ cost of any resource used to produce a good is the value or worth the resource would have in its best alternative use.
o accounting
o absolute
o explicit
o economic

Explanation:

Economic cost is defined as the value of a resource in its best - alternative use. Accounting cost only considers explicit monetary outlays. Absolute cost is not a standard economic term in this context. Explicit cost is a part of accounting cost and only includes direct payments. Economic cost takes into account both explicit and implicit costs, considering the opportunity cost of resources.

Answer:

D. economic