The opportunity cost arises _______
a. When there is just one alternative
b. When there are two or more alternative
c. None of the above

Dear student,
Option (b) i.e., when there are two or more alternative is correct.
The opportunity cost is the cost of producing one commodity in terms of another. It is the cost in terms of forgiven alternatives. Thus, opportunity cost is the next best alternative cost as what has been sacrificed to have more of a certain thing.
Hence, it can be concluded that opportunity cost arises when there are two or more alternatives.
Regards.

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