Question

A person has a choice between an apple or an orange. The person chooses the apple. What is the opportunity cost of choosing the apple?
a.
There is no opportunity cost.
c.
The utility of the apple.
b.
The value of what was not chosen.
d.
The scarcity of oranges.

Answer 1

b. The value of what was not chosen.

Opportunity cost is the benefit you forgo by not choosing the next-best alternative — here, the value (utility) you would have gotten from the orange.