Question

opportunity cost
a. only is considered for goods in short supply.
b. is the value of the next best alternative as a result of choosing some given alternative.
c. is the value of all alternatives forgone as a result of choosing some given alternative.
d. either b or c.

Explanation:

Opportunity cost is defined as the value of the next - best alternative forgone when a decision is made. It is not just for goods in short supply, and it is not the value of all alternatives forgone (as that would be too broad and unmanageable in economic analysis). The key is the next best alternative.

Answer:

B. is the value of the next best alternative as a result of choosing some given alternative.