Question

opportunity cost refers to
a. the total value of all alternatives
b. the dollar value of the activity in which you choose to engage
c. the intrinsic value of the activity in which you choose to engage
d. the value of the next - best alternative

Explanation:

Opportunity cost is the value of the next - best alternative forgone when a decision is made. It is not the total value of all alternatives, nor the value of the chosen activity itself (either in dollar terms or intrinsic terms).

Answer:

D. the value of the next - best alternative