Final answer:
The true statement is that the opportunity cost of a decision is the value of the best foregone alternative. Opportunity costs can be based on monetary and non-monetary factors and vary from person to person since they are subjective to each individual's preferences and circumstances. Option B is correct answer.
Step-by-step explanation:
The concept of opportunity cost is a fundamental principle in economics, representing the value of the best foregone alternative when a decision is made. A common misconception is that opportunity cost is always expressed in monetary terms, but it encompasses anything of value that is given up, such as time or resources. In examining the provided statements, it's important to highlight that opportunity costs are subjective to the individual or entity making the decision and can vary widely depending on personal or financial circumstances, preferences, and available alternatives.
For instance, the opportunity cost of attending college is not uniform for all students at the same university as each student might have different alternatives they are forsaking to attend college. One student's next best alternative might be working at a high-paying job, while another's could be traveling the world. Additionally, claiming that some economic decisions have zero opportunity cost overlooks the fact that, by definition, every choice excludes the possibility of taking a different action at that same moment.
Thus, regarding the provided statements, b. The opportunity cost of a decision is the value of the best foregone alternative is the correct statement. This encapsulates the essence of opportunity cost, emphasizing the trade-offs inherent in decision-making processes, which can be based on both monetary and non-monetary factors.