Opportunity Cost Is Defined as

question 248

Multiple Choice

Opportunity cost is defined as

• A) the value of the next-best alternative that must be sacrificed to attain a want.
• B) the least-costly means to produce output.
• C) the value of the output currently received by an individual or a corporation.
• D) the return from a given unit of labor.

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Definitions:

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a specific price level, at a given time.

Relatively Elastic

Describes a situation where a small change in price leads to a larger change in the quantity demanded or supplied.

Decrease in Price

A reduction in the cost of a good or service, which can influence consumer demand and potentially market dynamics.

Price Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in its price, indicating its sensitivity.