Opportunity cost:
a. has no relationship to the various alternatives that must be given up when a choice is made in the context of scarcity.
b. represents the worst alternative sacrificed for a chosen alternative.
c. represents all alternatives not chosen.
d. represents the best alternative sacrificed for a chosen alternative.
d
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When allocative efficiency occurs,
A) an economy produces the goods and services most highly valued. B) marginal benefit exceeds marginal cost by some amount. C) technology must be increasing. D) we can simultaneously produce more of all goods. E) marginal benefit exceeds marginal cost by as much as possible.
Because of the existence of comparative advantage, the total output of goods is higher when each producer
A) produces many different goods. B) produces at the midpoint of its PPF. C) specializes in the production of one good or a few goods. D) makes both intermediate and final goods.