Final answer:
Opportunity cost refers to the value of the best alternative you give up when making a choice. It's a concept used by economists to measure costs not just in money, but also in forgone time or resources. The determination of opportunity cost varies based on individual preferences and the value of alternatives.
Step-by-step explanation:
What Is Opportunity Cost?
Opportunity cost is defined as C) The value of the best alternative forgone in making a decision. When you make a choice, there is always a next best option that you do not choose. This foregone alternative represents the opportunity cost. For instance, if you decide to go to the movies on a Friday night, you might miss out on other activities such as seeing a concert, volunteering, visiting relatives, or working. If the best alternative you had to forego was visiting your favorite grandparent, that would be your opportunity cost.
Economists often use opportunity cost to assess the cost of a decision beyond monetary terms. It is about measuring what is sacrificed in order to pursue a certain action. The value might be quantified in terms of time, money, or any other resources that are given up. For example, if Alphonso chooses to buy a burger, the opportunity cost is the four bus tickets he could have bought instead. His decision would join on whether the satisfaction derived from the burger outweighs what he would obtain from the bus tickets.