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Which of the following is an explanation of opportunity cost? A - AQA - GCSE Business - Question 3 - 2020 - Paper 1
Question 3
Which of the following is an explanation of opportunity cost? A. Identifying business opportunities and bringing together resources to meet them B. Seeing a proble... show full transcript
Worked Solution & Example Answer:Which of the following is an explanation of opportunity cost? A - AQA - GCSE Business - Question 3 - 2020 - Paper 1
Step 1
D. The cost of making one choice concerning the use of limited resources at the expense of an alternative choice
Answer
Opportunity cost refers to the potential benefits or gains that are lost when one alternative is chosen over another. In this context, option D accurately describes this concept, as it emphasizes the cost associated with selecting one option at the expense of other available choices. This idea is central to decision-making processes in economics, where resources are limited and choices must be made.