Which of the following best defines opportunity cost? The financial cost of a good or service The money saved by not buying a product The benefit of the next best alternative forgone The total cost of production

The correct answer is: The benefit of the next best alternative forgone.<br /><br />Opportunity cost refers to the value or benefit that is given up when a choice is made to pursue one alternative over another. It represents the potential benefits that could have been obtained by choosing the next best alternative. In other words, opportunity cost is the cost of the next best alternative that is forgone when making a decision.