In the context of marginal analysis, producer A's opportunity cost of producing one more unit of good X is best described as:

• A. The total cost of all resources used in producing good X
• B. The market price of good X
• C. The profit earned from selling one more unit of good X
• D. The amount of good Y that must be forgone to produce an additional unit of good X

Answer: (D)

Verified step by step guidance

1. Understand the concept of opportunity cost in microeconomics: it represents the value of the next best alternative foregone when making a choice.
2. In the context of marginal analysis, focus on the decision to produce one more unit of good X and what must be sacrificed to do so.
3. Recognize that producing more of good X often means producing less of another good, say good Y, due to limited resources.
4. Therefore, the opportunity cost of producing one more unit of good X is the amount of good Y that must be given up to allocate resources to produce that extra unit of X.
5. This aligns with the principle that opportunity cost is not about total costs, market prices, or profits, but about the trade-off between alternatives in production.