WBCS.LIVE practice question

In economics, what is the term used for the value of the next best alternative foregone?

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. Marginal Cost
  2. Fixed Cost
  3. Opportunity Cost
  4. Variable Cost

Correct answer and explanation

Correct answer: Opportunity Cost

Explanation: ✅ Correct Answer: C) Opportunity Cost 📚 Explanation: Opportunity cost represents the potential benefits an individual, investor, or business misses out on when choosing one alternative over another. It is a fundamental concept in microeconomics that helps in decision-making by evaluating the cost of "what could have been." For example, the opportunity cost of studying for an exam might be the wages lost by not working during those hours.