Opportunity cost is defined as the:

A) dollar cost of what is purchased.
B) value of all alternatives not chosen.
C) value of the best alternative not chosen.
D) difference between the benefits from a choice and the benefits from the next best alternative.
E) difference between the benefits from a choice and the costs of that choice.

Opportunity Cost

The cost of an alternative that must be forgone in order to pursue a certain action or the benefits you miss out on when choosing one alternative over another.

Best Alternative

The Best Alternative usually refers to the most favorable option or choice that is available to an individual or organization from a set of possibilities.

Benefits

Forms of compensation provided to employees or the public, including health insurance, pension, and unemployment assistance.