The concept of 'Opportunity Cost' is best illustrated by:
A. The total cost of production
B. The value of the next best alternative forgone when a choice is made
C. The cost of producing one more unit
D. The difference between total revenue and total cost
Answer: Option B
Solution (By JKSSB Mock Tests)
Opportunity cost is the value of the best alternative that is sacrificed when a decision is made; it is fundamental to the study of choice under scarcity.
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