Answer (D) is correct . Opportunity cost is the benefit forgone by not selecting the best alternative use of scarce resources. The opportunity cost is zero when no alternative use for the productive facility is available.
Answer (A) is incorrect because Opportunity cost is not an out-of-pocket cost. It is the benefit given up by not selecting the best alternative.
Answer (B) is incorrect because Opportunity cost is not an out-of-pocket cost. It is the benefit given up by not selecting the best alternative.
Answer (C) is incorrect because Opportunity cost is not an out-of-pocket cost. It is the benefit given up by not selecting the best alternative.
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