. . . . . . . . is the maximum possible alternative earning that might have been earned if the productive capacity is put to some alternative use.

Opportunity
Incremental revenue
Alternative revenue
None of these

The correct answer is: A. Opportunity cost

Opportunity cost is the cost of an alternative that must be forgone in order to pursue a certain action. In other words, it is the value of the next best alternative that is given up when making a choice.

For example, if you choose to go to college, the opportunity cost is the income you could have earned if you had worked instead. Or, if you choose to buy a new car, the opportunity cost is the money you could have saved or spent on something else.

Opportunity cost is an important concept in economics because it helps us to make rational decisions. When we are faced with a choice, we need to consider the opportunity cost of each option in order to choose the one that is best for us.

Here is a brief explanation of each option:

  • Incremental revenue is the additional revenue that is generated by selling one more unit of a good or service.
  • Alternative revenue is the revenue that could have been earned if a different product or service had been sold.
  • None of these is not a correct answer.