"The value of the next best alternative" defines

A) the Law of Increasing Costs.
B) the economic problem.
C) allocative efficiency.
D) opportunity cost.

Opportunity Cost

The foregone benefit of the next best alternative when a decision is made to choose one option over another.

Allocative Efficiency

Occurs when no resources are wasted; it is not possible to make any person better off without making someone else worse off.

Economic Problem

The challenge of limited resources to meet unlimited wants and needs of society.