Final answer:
Opportunity cost is the value of the next best alternative and represents what one must give up to obtain what they desire. It reflects the tradeoffs individuals face when making choices. The correct option is A .
Step-by-step explanation:
The concept of opportunity cost is used by economists to indicate what one must give up to obtain what they desire. It represents the value of the next best alternative. For example, if Alphonso chooses to buy a burger, his opportunity cost would be the four bus tickets he would have to give up. This is because he faces a tradeoff and has to give up something in order to obtain what he desires more.
Opportunity cost is not limited to monetary costs; it also includes forgone opportunities or benefits. For instance, if employees attend a two-day retreat, the opportunity cost would be the work they could have done during that time.
Ultimately, opportunity cost reflects the tradeoffs individuals face when making choices and the value they assign to different options. Opportunity cost is the value of the next best alternative and represents what one must give up to obtain what they desire. It reflects the tradeoffs individuals face when making choices. The correct option is A .