Which type of cost refers to anything a buyer must give up to obtain the benefits a product provides?

• A. Fixed cost
• B. Explicit cost
• C. Marginal cost
• D. Opportunity cost

Answer: (D)

Verified step by step guidance

1. Understand the concept of 'cost' in economics, which includes various types such as fixed cost, explicit cost, marginal cost, and opportunity cost.
2. Define fixed cost as costs that do not change with the level of output, such as rent or salaries, which are not directly related to the decision of buying a product.
3. Define explicit cost as direct, out-of-pocket payments made to others in the course of running a business or making a purchase, like paying money for a product or service.
4. Define marginal cost as the additional cost incurred from producing or consuming one more unit of a good or service.
5. Recognize that opportunity cost refers to the value of the next best alternative foregone when making a choice, meaning it is anything a buyer must give up to obtain the benefits a product provides.