Question

If a commodity can be produced without sacrificing the production of another commodity _________.

• A. its opportunity cost is very high.
• B. its opportunity cost is low.
• C. its opportunity cost is constant.
• D. the opportunity cost concept does not apply here

Answer 1

The correct option is D the opportunity cost concept does not apply here

Opportunity cost represents the values of the next best alternative forgone as resources are limited but wants are unlimited and thus choices must be made. But if a commodity can be produced without sacrificing the production of another commodity then the opportunity cost concept longer remains applicable.