Question

Which statement about opportunity cost is true.

Answer 1

Answer:

D. Every ordinary decision we make involves an opportunity cost.

Explanation:

In economics, the opportunity cost or alternative cost designates the cost of investing the available resources at the expense of the best available alternative investment, or also the value of the best option not made. The term was coined by Friedrich von Wieser in his Theorie der gesellschaftlichen Wirtschaft (Theory of social economy, 1914). It refers to what an agent denies or renounces when making an election or making a decision.