Question

opportunity cost refers to

a) the dollar amount attached to a good or service.
b) the value of the next best alternative.
c) the cost of not expanding production.
d) the cost of labor when production is expanded or changed.

Explanation:

Opportunity cost is defined as the value of the next - best alternative forgone when making a decision. For example, if you choose to go to a concert instead of working overtime, the opportunity cost is the money you could have earned from working overtime.

Answer:

B) the value of the next best alternative.