Question

The alternative name of opportunity cost is

• A. Economic cost
• B. Equilibrium price
• C. Marginal cost
• D. Average cost

Hint:

Economic Cost = Explicit Costs + Implicit Costs (like Opportunity Cost).

Answer 1

The Correct Option is A

Opportunity cost is the value of the next-best alternative that is given up when making a choice. Economic cost is a broader concept than accounting cost because it includes both explicit costs (money paid out) and implicit costs. The primary implicit cost is opportunity cost. Therefore, economic cost is often used as a more formal term that encompasses opportunity cost.