What is the technical term for ‘Next best Alternative’?
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- The value of the alternative selected.
- The value of all alternatives not selected.
- The difference between the alternative selected and the next best alternative.
- The value of the next best alternative not selected.
Which of the following best describes opportunity cost?
a. The value of the alternative selected.
b. The value of all alternatives not selected.
c. The difference between the alternative selected and the next best alternative.
d. The value of the next best alternative not selected.
If the opportunity cost is the value of the next best alternative, why would you ever add up costs? That is, wouldn’t there just be one next best alternative?