Multiple choice

Directions: Choose the correct option and complete the sentence.

The value of a benefit sacrificed in favour of an alternative course of action is known as

  1. variable cost

  2. fixed cost

  3. opportunity cost

  4. direct cost

  5. indirect cost

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Opportunity cost is the value of the next best alternative that is forgone when a specific choice is made.