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The opportunity cost of a decision is

2172Medium DSSSB TGT Computer Science 0 replies

The opportunity cost of a decision is

  • Athe money actually spent on it
  • Bthe cost that has already been incurred and cannot be recovered
  • Cthe total cost of all alternatives
  • Dthe value of the next best alternative that is given up
Correct answer: D

Explanation

Opportunity cost measures what is sacrificed by choosing one option over the best alternative; the last option describes a sunk cost.

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