Which of the following is a feature of opportunity cost?

Opportunity cost is fundamentally about evaluating choices in the context of limited resources. It specifically measures the cost of foregone alternatives when a decision is made. This means it represents the benefit an individual or organization misses out on when choosing one option over another.

For example, if a farmer decides to plant corn instead of soybeans, the opportunity cost is the potential profit from soybeans that they will not earn due to choosing to plant corn. This cost is not limited to just monetary values but can also include time, resources, or any other benefits associated with the option that was not chosen.

This concept is essential because it encourages individuals and businesses to consider the implications of their decisions in light of the alternatives that they are giving up, leading to more informed and rational decision-making.