10
QuizMultiple Choice

Study Guide and Quiz

Question 10 • S25 Introduction to Business A (Theisen)

What is the opportunity cost of an investment?

Answer
A
The combined values of the other opportunities available
B
The value of the next most valuable opportunity
C
The marginal benefit of the investment
D
The volatility of the investment

Explanation

Opportunity cost is the value of the best alternative you give up when making a choice. For an investment, that is the value of the next most valuable opportunity, not the combined value of all alternatives or the investment’s own benefit or volatility. The correct choice is “The value of the next most valuable opportunity.”

AI-written and checked against the verified answer.

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