Which of the Following Is Correct Concerning Opportunity Cost

question 68

Multiple Choice

Which of the following is correct concerning opportunity cost?

• A)Except to the extent that you pay more for them,opportunity costs should not include the cost of things you would have purchased anyway.
• B)To compute opportunity costs,you should subtract benefits from costs.
• C)Opportunity costs and the idea of trade-offs are not closely related.
• D)Rational people should compare various options without considering opportunity costs.

---

Definitions:

Profit-Maximizing

A strategy or process aimed at increasing a company's profits to the highest possible level.

Vickrey Auction

A type of sealed-bid auction where the highest bidder wins but pays the price offered by the second-highest bid.

Foreclosed

The judicial procedure that ends an owner's claim to a property, often because of the inability to keep up with mortgage payments.

Expected Revenue

The anticipated amount of money that a business expects to receive from its activities or sales, based on probabilistic assessment of future sales.