Question

question 5

1. the value of the best alternative sacrificed to obtain something you want is referred to as

a) explicit cost.
b) opportunity cost.
c) marginal cost.
d) sunk cost.

Explanation:

Opportunity cost is defined as the value of the next - best alternative that is forgone when a decision is made. Explicit cost is the actual out - of - pocket cost. Marginal cost is the cost of producing one additional unit. Sunk cost is a cost that has already been incurred and cannot be recovered.

Answer:

B. opportunity cost.