Question

Brazil spent billions of dollars to host the Soccer World Cup and the Summer Olympics. The opportunity cost of hosting these events is​
A. ​ the opportunity to host these events in the future.
B. ​ the monetary cost expressed in reals (Brazilian currency).
C. increased taxes to pay for the events.
D. ​ the next best alternative bundle of goods and services that could be provided.

Answer 1

Answer:

the next best alternative bundle of goods and services that could be provided.

Explanation:

Opportunity cost can be described as the cost of what was given up in order to carry out a particular activity. It is the next best alternative bundle of goods and services that could be provided. It is also known as implicit cost and it is used in calculating economic profit.

Economic profit = Accounting profit - Opportunity cost

The monetary cost expressed in reals (Brazilian currency) is the explicit cost.

Explicit cost is the actual cost incurred in carrying out an activity.

Accounting profit = Total revenue - Explicit cost

I hope my answer helps you