At higher prices, what happens to the opportunity cost?A.It gets larger.B.There's no way to tell.C.It gets smaller.D.There's no difference.

Understanding the Concept

The concept of opportunity cost refers to the benefits an individual or economy might miss out on when choosing one alternative over another. As prices increase, the cost of forgoing the next best alternative becomes relevant as more resources could be used more efficiently or profitably in the next best alternative.

Analysis of the Options

1. A. It gets larger.
   As prices rise, the potential benefits of the next best alternative that is not chosen can increase, making the opportunity cost larger.

2. B. There's no way to tell.
   This option suggests uncertainty, which is not applicable when analyzing the relationship between price and opportunity cost.

3. C. It gets smaller.
   This is incorrect; as prices rise, the opportunity cost generally increases because the benefits of the next alternative become more significant.

4. D. There's no difference.
   This option implies that opportunity cost remains constant, which is also misleading.

Final Answer

A. It gets larger.
At higher prices, the opportunity cost typically increases because more valuable alternatives are forgone, leading to a larger opportunity cost.