What is the opportunity cost of a decision?

A. the alternative ways that a different person might have made the decision

B. the best possible way the question could have been decided

C. the series of alternative decisions that could have been made

D. the most desirable alternative given up as the result of a decision

A benefit, profit, or value of something that must be given up to acquire or achieve something else. Since every resource (land, money, time, etc.) can be put to alternative uses, every action, choice, or decision has an associated opportunity cost.

Opportunity costs are fundamental costs in economics, and are used in computing cost benefit analysis of a project. Such costs, however, are not recorded in the account books but are recognized in decision making by computing the cash outlays and their resulting profit or loss.

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