Asked by
Joshua Crouch
on Dec 12, 2024
Verified
Which of the following is NOT true of opportunity cost?
A) Opportunity costs are subjective because they depend upon how the decision-maker values his or her options.
B) Opportunity costs are only the monetary costs of lost options.
C) Opportunity costs are the highest-valued alternative sacrificed in order to choose an option.
D) Only the decision-maker can determine his or her opportunity costs for any particular action.
Opportunity Cost
The cost of forgoing the next best alternative when making a decision or choosing to undertake an action.
Monetary Costs
The financial expenses incurred in the production of a good or service, including raw materials, labor, and other expenditures that can be measured in monetary terms.
Lost Options
Alternatives forgone when a decision is made, often considered in opportunity cost analysis.
- Expound and figure out the opportunity costs in several economic circumstances.
Verified Answer
NK
Learning Objectives
- Expound and figure out the opportunity costs in several economic circumstances.