Question

The opportunity cost of a decision is measured in terms of
A. the price of a new opportunity that arises
B. the price of the alternative we chose
C. Sunk cost
D. the next best thing given up
E. time

Answer 1

Answer:

D.

Explanation:

The opportunity cost of a decision is measured in terms of the sacrifice of the next best alternative, in other words the next best thing given up. Since opportunity cost refers to what you are losing or better yet giving up when you end up making a decision between two or more different options and once done are not able to choose the other option(s).