Question

Opportunity cost is:

• A. Numbers of units sacrificed
• B. Numbers of units gained
• C. Cost of next best alternative
• D. None of these

Hint:

Opportunity cost helps in decision-making by considering what is given up in exchange for the chosen option.

Answer 1

The Correct Option is C

Step 1: Understanding opportunity cost.
Opportunity cost refers to the value of the next best alternative that is forgone when making a decision. It is an essential concept in economics, representing the trade-off between different choices.

Step 2: Conclusion.
Thus, the correct answer is option (3) "Cost of next best alternative."