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opportunity cost: d. represents the best alternative sacrificed for a chosen alternative is the correct answer
What does an opportunity cost mean?
Opportunity costs are the possible advantages that a person, investor, or company forgoes while deciding between two options. Opportunity costs are by definition invisible, making it simple to ignore them. Making smarter decisions requires an understanding of the possible possibilities lost when a company or person choose one investment over another.
- Opportunity cost is the advantage that was lost because a particular alternative was not selected.
- It is necessary to examine the advantages and disadvantages of each choice offered in order to correctly assess opportunity costs.
- Opportunity costs have a value that may help people and businesses make more lucrative decisions.
- Opportunity cost is a wholly internal expense that is only utilised for strategic consideration; it is not included in accounting profit and is not reported externally.
- Opportunity cost examples include choosing to build a new manufacturing facility in Los Angeles as opposed to Mexico City, forgoing an equipment update, or selecting the most expensive product packaging over less expensive alternatives.
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