Question

Opportunity cost refers to:

Answer 1

opportunity costs refer to the value of the next-best alternative use of that resource given limited resources.

Step-by-step explanation:

Answer 2

When economists refer to the “opportunity cost” of a resource, they mean the value of the next-highest-valued alternative use of that resource. If, for example, you spend time and money going to a movie, you cannot spend that time at home reading a book, and you can't spend the money on something else.