Opportunity cost: The opportunity cost refers to the give-up benefit in the process of opting one option over another. The benefit related to the unelected alternate is considered as opportunity cost. These alternates are mutually exclusive. Explain the reason for using the opportunity cost in decision making.

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Chapter 6, Problem 6.10Q

To determine

Concept Introduction:

Opportunity cost:

The opportunity cost refers to the give-up benefit in the process of opting one option over another. The benefit related to the unelected alternate is considered as opportunity cost. These alternates are mutually exclusive.

Explain the reason for using the opportunity cost in decision making.

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