The principle of opportunity cost is that:a. in a market economy, taking advantage of profitable opportunities involves some money cost. b. the economic cost of using a factor of production is the alternative use of that factor that is given up. c. taking advantage of investment opportunities involves costs. d. the cost of production varies depending on the opportunity for technological application.

Question

Jean Collier

Business

19 December, 20:23

The principle of opportunity cost is that:a. in a market economy, taking advantage of profitable opportunities involves some money cost. b. the economic cost of using a factor of production is the alternative use of that factor that is given up. c. taking advantage of investment opportunities involves costs. d. the cost of production varies depending on the opportunity for technological application.

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Dalton Coleman · Answer 1

Option B

Explanation:

The opportunity cost refers to the situation when an option is selected from alternatives and is the "cost" borne by not having the gain associated with the best value choice.

Simply put, the cost of opportunity is the gain not earned because the next best option is not chosen. Opportunity costs are an important economic notion and are defined as conveying "the fundamental engagement between shortages and selection." The notion of cost of opportunity plays an important role in efforts to make productive use of limited resources.