alleryWhat is the opportunity cost defined as in microeconomic theory?
ATotal money spent on the choice
BValue of the best alternative forgone
CPrice of the final product sold
DCost of the raw materials used
Answer & Solution
Correct answer: B. Value of the best alternative forgone
Opportunity cost is the value of the best option given up when a choice must be made between exclusive alternatives.
Keep practising Building Blocks in Economics
Browse all Building Blocks in Economics questions for CBSE Class 9, or explore more Social Science topics.
Related questions
What is one way entrepreneurs can exploit opportunities?What does bootstrapping try to minimise?Which two thinkers defined entrepreneurship in terms of risk-taking?What do venture capital firms take for seed money?What do revenue-based financing lenders receive for growth capital?Which activity describes startup investing?What is an internal startup in a large company?When is a startup usually in its seed round?