Questions: Multiple Choice Question The value of the next best forgone alternative is the sunk opportunity explicit reservation

The answer is opportunity.

A sunk cost refers to money that has already been spent and cannot be recovered. It is not related to the concept of the next best forgone alternative.

Opportunity cost is the value of the next best alternative that is forgone when a decision is made. It represents the benefits that could have been received if the resources were used in the next best alternative way.

Explicit costs are direct, out-of-pocket payments for expenses, such as wages, rent, and materials. They do not represent the value of the next best alternative.

A reservation cost or price is typically associated with the minimum price a seller is willing to accept or the maximum price a buyer is willing to pay. It does not relate to the concept of the next best forgone alternative.