Question

1 Select the correct answer. What represents the value of the second-best alternative that a person gives up when making a choice? O A. marginal spending O B. marginal benefit O C. opportunity cost OD. marginal cost Reset Next Als reserved.​

Answer 1

Answer: Opportunity cost

Explanation:

The option that represents the value of the second-best alternative that a person gives up when making a choice is referred to as opportunity cost.

Opportunity cost is defined as the cost of what an individual forgoes in order for such person to get something else. For example of an individual has a choice to make between a job that pays $20 per hour and another that pays $25 per hour. If he or she eventually chooses the job of $20 per hour, the opportunity cost is the $25 per hour job that the individual forgoes.