Which of the following correctly defines opportunity cost?

It is the value of a factor in its best use

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It is the value of a factor in its next best alternative use

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It is the value of a factor in its current use

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It is the cost incurred on losing an opportunity

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Solution

The correct option is B It is the value of a factor in its next best alternative use
Opportunity cost is the value of a factor in its next best alternative use.

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Similar questions

Q. Q. Which of the following correctly describes the meaning of the “Opportunity Cost”?

Q. Define opportunity cost.

Define total opportunity cost.

Q. Define marginal opportunity cost along a PPC.

Which of the following statements about opportunity cost is TRUE?

I. Opportunity cost is equal to implicit costs plus explicit costs.
II. Opportunity cost only measures direct monetary costs.
III. Opportunity cost accounts for alternative uses of resources such as time and money.

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Which of the following correctly defines opportunity cost?

The correct option is B It is the value of a factor in its next best alternative useOpportunity cost is the value of a factor in its next best alternative use.

The correct option is B It is the value of a factor in its next best alternative use
Opportunity cost is the value of a factor in its next best alternative use.