Opportunity Cost Is the Amount of Increase or Decrease in Cost

question 92

True/False

Opportunity cost is the amount of increase or decrease in cost that would result from the best available alternative to the proposed use of cash or its equivalent.

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Definitions:

Equilibrium Price

The market price at which the quantity of a good supplied equals the quantity demanded, resulting in market balance.

Surplus Amount

The quantity of a good or service that exceeds what is demanded at a given price.

Producer Surplus

The difference between what producers are willing to receive for a good compared to what they actually receive, essentially the profit.

Price Rises

An increase in the cost of goods or services, often due to factors such as inflation, increased production costs, or higher demand.