Question

The cost of one thing in terms of the alternative given up is called ______.

• A. real cost
• B. production cost
• C. physical cost
• D. opportunity cost

Answer 1

The correct option is D opportunity cost

“opportunity cost” of a resource, they mean the value of the next-highest-valued alternative use of that resource.
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.