Which of the Following Is NOT True of Opportunity Cost

question 56

Multiple Choice

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.

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Definitions:

Organization

A structured arrangement of people working together to accomplish specific goals.

Geographically

Relating to the physical location or spatial characteristics of an area or place.

Hierarchically

In a manner that arranges things or concepts in levels of importance or rank.

Lines Of Reporting

The hierarchical structure within an organization that defines who reports to whom, outlining the flow of authority and accountability.