Question

Which best describes an opportunity cost?

aaccepting an opportunity to do something else when making an economic decision
giving up an opportunity to do something else when making an economic decision
accepting an opportunity to help accomplish something else when making an economic decision
giving up an opportunity to increase prices when making an economic decision

Answer 1

Opportunity cost is giving up an opportunity to do something else when making an economic decision.

Answer 2

Opportunity cost is best described as below:

Giving up an opportunity to do something else when making an economic decision.

In simple words, when there are two or more options in front of a person while making a decision, and he takes one of them by keeping something in mind and leave the other ones, then he is losing the opportunity of having the other alternative. This losing cost is actually the Opportunity Cost. It is basically the loss of one option while choosing the other one.