Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
The cost of a product's price
B
The value of the next best alternative forgone
C
The total expenses incurred in production
D
The economic profit made from selling an item
Understanding the Answer
Let's break down why this is correct
Answer
Opportunity cost is an important concept in economics that helps us understand the trade-offs we make when we make choices. It refers to the value of the next best alternative that we give up when we decide to use our resources, such as time or money, in one way instead of another. For example, if you decide to spend your Saturday working at a part-time job instead of going to a concert, the opportunity cost is the enjoyment and experience you would have gained from attending the concert. By considering opportunity cost, we can make better decisions that align with our goals and priorities. This idea shows that every choice has a cost, even if it isn't always in the form of money.
Detailed Explanation
Opportunity cost is what you give up when you choose one option over another. Other options are incorrect because Some might think opportunity cost is just the price of something; This option confuses costs with opportunity cost.
Key Concepts
opportunity cost
Topic
Trade-offs in Economics
Difficulty
easy level question
Cognitive Level
understand
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