Opportunity Cost Is Defined

question 196

Multiple Choice

Opportunity cost is defined

• A) only in terms of money spent
• B) as the value of all alternatives not chosen
• C) as the value of the best alternative not chosen
• D) as the difference between the benefits from a choice and the benefits from the next best alternative
• E) as the difference between the benefits from a choice and the costs of that choice

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Definitions:

Budget

An estimation of revenue and expenses over a specified period.

Isocost Line

Graph showing all possible combinations of labor and capital that can be purchased for a given total cost.

Input Combinations

The various mixes of inputs or factors of production a firm can use to produce a given level of output.

Total Cost

The total amount of money spent on creating goods or services, encompassing both constant and changeable expenses.