Question

question 3 points 3 what does the term \opportunity cost\ mean?
○ the cost of producing one unit of any good
○ the price of an impulse purchase
○ the highest valued choice that was declined
○ the cost of establishing a business

Explanation:

To determine the meaning of "opportunity cost", we analyze each option:

• "The cost of producing one unit of any good" refers to marginal cost, not opportunity cost.
• "The price of an impulse purchase" is unrelated to the economic concept of opportunity cost.
• "The highest valued choice that was declined" matches the definition of opportunity cost, as it's the value of the next - best alternative foregone when a decision is made.
• "The cost of establishing a business" is startup cost, not opportunity cost.

Answer:

C. The highest valued choice that was declined