Question

which of the following descriptions best explains the meaning of opportunity cost?

a) the initial cost of starting a new business

b) the cost of business failure

c) the cost of choosing one alternative over another

d) the risk associated with producing a new item

Explanation:

Opportunity cost is defined as the value of the next - best alternative forgone when a decision is made. It represents the cost of choosing one option over another.

Answer:

C. the cost of choosing one alternative over another