Question 3
Basic ConceptsWhich of the following best describes the concept of opportunity cost?
- A.A special bargain or sale at below market price
- B.Costs for inputs tend to go up as we use more of them
- C.Goods that are not produced in order to produce more of another good
- D.A cost that constantly decreases.
Show the answer and explanation
Answer: C (Goods that are not produced in order to produce more of another good)
Explanation
Opportunity cost is what is given up: the goods not produced so that more of another good can be produced.