1. What is Opportunity Cost?

a. The cost of a choice compared to the next best choice

b. The unavailability of unlimited resources to satisfy unlimited wants

c. The benefit of consurning a good or service

d. The decreasing benefit of consuming additional goods or services

e

conomic fit

The correct answer is A. The cost of a choice compared to the next best choice.

Explanation:

Opportunity cost is the cost of what you give up to get or purchase something else in return. It also refers to an "alternative forgone". For instance, you have just 10 dollars and you are stuck in between buying lunch and your transportation home. What you do is opt for the better choice, which is transporting yourself home and this does not mean lunch is of less importance. You had to let go of one for the other.