Opportunity Cost is ______

CA Foundation · Business Economics · MTP · September 2024
Opportunity Cost is ______
(A) A. A cost that cannot be avoided.
(B) B. The cost incurred in the past before we make a decision about what to do in the future.
(C) C. That which we forgo or give up when we make a choice or a decision.
(D) D. The additional benefit of buying an additional unit of a product.

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. That which we forgo or give up when we make a choice or a decision.

Topics: Theory of Production and Cost

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