Economics • Economic BasicsEasy
Which of the following economic concepts refers to the cost of a decision measured in terms of the best foregone alternative?
A. Sunk Cost
B. Opportunity Cost✓ Correct Answer
C. Marginal Cost
D. Explicit Cost
💡 Solution & Explanation
Opportunity cost measures the value of the best alternative forgone when making a specific economic choice. Sunk costs involve past expenditures that cannot be recovered and should not affect current decisions.
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