The opportunity cost of an item is

Question

a. usually less than the dollar value of the item.
b. the number of hours needed to earn money to buy the item.
c. the dollar value of the item.
d. what you give up to get that item.

Answer 1

The correct answer is: d. what you give up to get that item.

Opportunity cost refers to the value of the next best alternative that you forego when making a choice. It includes not just the monetary cost of the item but also any other benefits you could have received from the alternative option.