Question
Which statement about opportunity cost is true?
Every ordinary decision we make involves an opportunity cost.
It is the least desirable alternative given up as the result of a decision.
Every decision has at least two opportunity costs.
When making a decision, every trade-off is an opportunity cost.
Answers
GPT-4o mini
The true statement about opportunity cost is:
**"It is the least desirable alternative given up as the result of a decision."**
Opportunity cost refers to the value of the next best alternative that is forgone when a decision is made. While it's correct that every decision can involve opportunity costs, not every ordinary decision creates multiple opportunity costs, and not every trade-off counts as an opportunity cost. The key aspect is that it specifically refers to the next best alternative that has been sacrificed.
**"It is the least desirable alternative given up as the result of a decision."**
Opportunity cost refers to the value of the next best alternative that is forgone when a decision is made. While it's correct that every decision can involve opportunity costs, not every ordinary decision creates multiple opportunity costs, and not every trade-off counts as an opportunity cost. The key aspect is that it specifically refers to the next best alternative that has been sacrificed.