Asked by
LaQwana Smith
on Oct 14, 2024
Verified
Opportunity costs are the additional or incremental revenues generated by selecting a certain course of action.
Opportunity Costs
The cost of forgoing the next best alternative when making a decision, representing the benefits an individual, investor, or business misses out on when choosing one alternative over another.
Incremental Revenues
Additional revenue generated from a specific action or decision, comparing the difference in total revenue with and without the action.
- Identify the importance of opportunity cost in decision-making.
Verified Answer
AH
Learning Objectives
- Identify the importance of opportunity cost in decision-making.