Question

What is the basic premise of an opportunity cost?

A) When the demand for a product or service increases, the cost of that product
or service also increases

B) People are more likely to spend their money when there are many opportunities
to do so.

C) When you buy something, you are foregoing all the other things you could have
bought instead.

D) A form of currency is needed to allow people in unrelated businesses to
exchange services.

Answer 1

The idea behind opportunity cost is that the cost of one item is the lost opportunity to do or consume something else; in short, opportunity cost is the value of the next best alternative.

Option C