Question

opportunity cost is
a. when consumers and firms use all available information as they act to achieve their goals.
b. the idea that because of scarcity, producing more of one good or service means producing less of another good or service.
c. when unlimited wants exceed the limited resources available to fulfill those wants.
d. the highest valued alternative that must be given up to engage in an activity.

Explanation:

Opportunity cost is defined as the value of the next - best alternative forgone when making a decision. It represents the highest valued alternative that must be given up to engage in a particular activity. Option A describes rational behavior, option B describes the concept of trade - offs due to scarcity, and option C describes scarcity itself.

Answer:

D. the highest valued alternative that must be given up to engage in an activity.