Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
The cost of the chosen option
B
The value of the next best alternative that is forgone
C
The total expenses incurred
D
The initial investment required
Understanding the Answer
Let's break down why this is correct
Answer
Opportunity cost is the idea that when you make a choice, you give up something else you could have chosen instead. It helps you think about what you are losing when you decide to do one thing over another. For example, if you have $10 and choose to buy a book instead of going to the movies, the opportunity cost is the fun experience you miss out on at the movies. Understanding opportunity cost helps you make better decisions by considering not just what you gain, but also what you sacrifice. This way, you can weigh your options more carefully before making a choice.
Detailed Explanation
Opportunity cost is about what you give up when you make a choice. Other options are incorrect because Some might think it’s just the cost of what you picked; This answer suggests all costs matter.
Key Concepts
next best alternative
Topic
Understanding Opportunity Costs
Difficulty
easy level question
Cognitive Level
understand
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