Question
What are opportunity costs in economics?
A.
The value of the next best alternative forgone
B.
Only applicable to financial decisions
C.
The cost of production
D.
The total expenses incurred
A.
The value of the next best alternative forgone
B.
Only applicable to financial decisions
C.
The cost of production
D.
The total expenses incurred
Answers
GPT-4o mini
A. The value of the next best alternative forgone
Opportunity costs in economics refer to the value of the next best alternative that is sacrificed when making a choice. This concept emphasizes that choosing one option means forgoing another, and it’s an important factor to consider when making decisions.
Opportunity costs in economics refer to the value of the next best alternative that is sacrificed when making a choice. This concept emphasizes that choosing one option means forgoing another, and it’s an important factor to consider when making decisions.