Final answer:
The opportunity cost of making roses is the cost of producing computers, which is the next best alternative forgone by the workers to produce roses.
Step-by-step explanation:
The opportunity cost of making roses is what you give up to produce them instead of the next best alternative, in this case, making computers. Hence, the correct answer is A. The cost of producing computers. When workers produce roses instead, the alternative forgone is the output of computers they could have produced. To clarify, if they produce more roses, the production of computers will decrease. This is true because when making a decision, every choice has a trade-off and implies that you lose the opportunity to engage in the next most valued alternative. Considering the allocative efficiency where the price (P) equals the marginal cost (MC), producing beyond that quantity means P < MC, which indicates that costs are higher than societal benefits. Therefore, it's beneficial to reduce production to where the benefit to society matches the marginal cost of production. Remembering that opportunity cost is the value of the next best alternative given up, it's important to note that this will differ among individuals based on their preferences and the situation at hand.