Question

Carlos is trying to decide among a hamburger, a hot dog, or a salad. He chooses the hamburger. Any value given up by not choosing the hot dog or the salad is called the _____.

trade-off
opportunity cost
marginal benefit

Answer 1

Carlos is trying to decide among a hamburger, a hot dog, or a salad. He chooses the hamburger. Any value given up by not choosing the hot dog or the salad is called the opportunity cost

Answer 2

Answer: B. Opportunity Cost

Opportunity cost refers to the value of benefits one gives up when choosing an alternative or making a decision. It can also be described as the value of the next best alternative.

Opportunity costs are also known as alternate costs.

When Carlos decides to have a hamburger, his alternate costs comprise of the costs of the hot dog or the salad.