Which answer best defines opportunity cost?
Asked by: Kyleigh Treutel | Last update: December 7, 2025Score: 4.4/5 (35 votes)
Which best defines opportunity cost?
Answer and Explanation:
Opportunity cost best describes when the difference between the value of the next best alternative forgone and the alternative selected is calculated.
Which defines the opportunity cost?
When economists refer to the “opportunity cost” of a resource, they mean the value of the next-highest-valued alternative use of that resource. If, for example, you spend time and money going to a movie, you cannot spend that time at home reading a book, and you can't spend the money on something else.
Which of the following best defines opportunity cost Quizlet?
Opportunity cost is defined as the cost of the lost opportunity, i.e. the value of the best alternative forgone.
What is opportunity cost best defined as quizizz?
The cost of making one decision over another. The cost for the opportunity to buy anything you want.
Which answer best defines opportunity cost
Which is the most correct answer that defines opportunity cost?
Opportunity cost is best defined as B) the value of the things you have to give up to get something else. It is an economic concept that refers to the value of the best alternative that we forgo when making a decision.
What is opportunity cost best defined as chegg?
the amount of money paid for an item, taking possible discounts into account.
Which of the following correctly defines opportunity cost?
Opportunity cost is the value of a factor in its next best alternative use.
What answer best describes the concept of opportunity costs?
Opportunity cost is the forgone benefit that would have been derived from an option other than the one that was chosen.
What is the best definition of opportunity cost brainly?
Final answer:
Opportunity cost is the value of the benefits that are lost when choosing one option over another. The best definition is that it represents the benefits missed when making a decision.
What is an example of opportunity cost?
For example, if an individual owns 100 acres of farmland, he or she has the decision of either farming the land or renting it to a neighbor. If he or she farms the land, the opportunity cost is the income foregone by not renting it to a neighbor.
What is opportunity cost also known as ____?
Opportunity cost is also called alternative cost. Both terms refer to the benefit or potential gain that must be given up to pursue another course of action.
How to identify opportunity costs?
Opportunity cost is the benefit you forego in choosing one course of action over another. You can determine the opportunity cost of choosing one investment option over another by using the following formula: Opportunity Cost = Return on Most Profitable Investment Choice - Return on Investment Chosen to Pursue.
What is the simplest definition of opportunity cost?
Opportunity cost is the value of what you lose when choosing between two or more options. It's a core concept for both investing and life in general.
Which of the following best defines and values opportunity cost?
The correct answer is the Value of the next best alternative that is given up. It is defined as the cost of the next best alternative foregone. It represents the sacrifices that people must make due to the scarcity of resources.
What best describes the opportunity cost of a decision?
“Opportunity cost is the value of the next-best alternative when a decision is made; it's what is given up,” explains Andrea Caceres-Santamaria, senior economic education specialist at the St. Louis Fed, in a recent Page One Economics: Money and Missed Opportunities.
Which describes opportunity cost quizlet?
Opportunity cost is a lost advantage that occurs by choosing one alternative at the same time as forsaking another. In other words, opportunity cost is what you must give up to get something.
What is the main idea behind opportunity cost?
The idea behind opportunity cost is that the cost of one item is the lost opportunity to do or consume something else; in short, opportunity cost is the value of the next best alternative.
Which scenario is the best example of an opportunity cost?
The correct answer is a. A computer company produces fewer laptops to meet tablet demand. Opportunity cost defines the benefit obtained by having a commodity after forgoing some other commodity. In the problem statement, the computer company incurs an opportunity cost of laptops for tablets.
What best defines opportunity cost?
An opportunity cost is the value of the option not taken when a business makes a decision. For example, if the business is deciding whether to purchase two new tractors, the opportunity cost of not doing so would be the potential revenue and profitability lost by not being able to take on another project.
Which of the following defines the opportunity cost?
It is the value of the next best alternative that is forgone when a choice is made. For example, if you decide to go to a party instead of studying for a test, the opportunity cost is the potential higher grade you could have achieved if you had chosen to study.
Which of the following best reflects an opportunity cost?
Final answer:
The saying "There is no such thing as a free lunch" best reflects the concept of opportunity cost, highlighting that every choice involves forgoing an alternative and comes with a sacrifice.
Which one of these definitions best describe opportunity costs?
The correct answer is b. Benefits foregone by not choosing an alternative course of action. Opportunity cost is the future income or cost that would have been earned or incurred if this alternative was chosen. If not chosen, this would be the given up income or savings of that alternative.
What is the correct definition of an opportunity cost responses?
An opportunity cost is the cost of not being able to do other things with time and resources because of doing the chosen activity. The opportunity cost of holding money rather than buying bonds or some other interest-bearing asset is the nominal interest that would otherwise be earned.
What is the correct definition of the opportunity cost of a choice?
The opportunity cost of a choice is the value of the best alternative given up. Choices involve trading off the expected value of one opportunity against the expected value of its best alternative. The evaluation of choices and opportunity costs is subjective; such evaluations differ across individuals and societies.