In the context of scarcity and choice, the concept of opportunity cost means that to obtain one thing, something else needs to be what?

• A. Produced using fewer resources than before
• B. Purchased at a lower price than its substitutes
• C. Given up (forgone) as the next-best alternative
• D. Consumed only after all necessities are satisfied

Answer: (C)

Verified step by step guidance

1. Understand the concept of opportunity cost in microeconomics: it refers to the value of the next best alternative that must be given up when making a choice.
2. Recognize that scarcity means resources are limited, so choosing one option means you cannot choose another.
3. Identify that opportunity cost is not about producing with fewer resources or purchasing at a lower price, but about what you sacrifice when you make a decision.
4. Focus on the idea that the opportunity cost is the benefit or value of the next best alternative that is forgone when a choice is made.
5. Conclude that in the context of scarcity and choice, to obtain one thing, something else must be given up (forgone) as the next-best alternative.