Question

The value of something we give up in order to obtain something else is referred to as a(n) ________.

A) transformation cost
B) opportunity cost
C) exchange
D) variable cost
E) marginal cost

Answer 1

Opportunity cost is the value of the next best alternative, representing what one must give up to obtain something else. It is an important concept in economics and decision-making.

Step-by-step explanation:

Opportunity cost is the value of the next best alternative. It is the cost of giving up something in order to obtain something else. For example, if a person chooses to buy a burger instead of using the money for bus tickets, the opportunity cost of the burger would be the four bus tickets that would have been obtained.

Opportunity cost is an important concept in economics and decision-making because it helps individuals and businesses consider the benefits and drawbacks of their choices.