Question

the opportunity cost of an action is:
a. the cost of all alternative actions that could have been taken, added together.
b. the total time spent by all parties in carrying out the action.
c. the value of the best opportunity that must be sacrificed in order to take the action.
d. the monetary payment the action required.

Explanation:

Opportunity cost is defined as the value of the highest-valued alternative that is forgone when making a choice. Option a is incorrect because it does not sum all alternatives, only the best one. Option b refers to time cost, not opportunity cost. Option d describes explicit monetary cost, not the implicit opportunity cost.

Answer:

c. the value of the best opportunity that must be sacrificed in order to take the action.