Question 2
Basic ConceptsWhich of these is the real cost of satisfying any want in the sense of the alternative that has to be foregone?
- A.Variable cost
- B.Opportunity cost
- C.Total cost
- D.Prime cost
Show the answer and explanation
Answer: B (Opportunity cost)
Explanation
Opportunity cost is the next best alternative given up when a choice is made, so it is the real cost of satisfying a want.