Question

The concept of opportunity cost is described in which of the following statements?

1) The monetary value of an exchange of goods for services or the opportunity to do something.
2) The cost of an opportunity to do something.
3) The value of goods and services exchanged in an opportunity.
4) The value of an opportunity to do something.

Answer 1

Opportunity cost is the value of the next best alternative that one gives up to obtain what they desire.

Step-by-step explanation:

The concept of opportunity cost is described in the following statement:

Opportunity cost is the value of the next best alternative.

It represents the cost of one item in terms of the lost opportunity to do or consume something else. It is the value of the best alternative forgone in making any choice. For example, if you choose to spend money on a movie ticket, the opportunity cost would be the value of the next best alternative use of that money, such as buying a book or going to a concert.