Question

Opportunity Costs arise ______.

Options

• When there is only course of action

• When there are two or more alternative courses

• Both (a) and (b)

• Neither (a) nor (b)

Answer 1

Opportunity Costs arise when there are two or more alternative courses.

Explanation:

Opportunity cost arises only when there are two or more alternative courses of action, because then choosing one means giving up the next best alternative.