In Which Situations Should Opportunity Costs Be Considered

question 29

Multiple Choice

In which situations should opportunity costs be considered?

• A)decision making that involves alternative uses
• B)forecasting sales
• C)financial accounting
• D)break-even analysis

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Definitions:

Minimum Value

The lowest value in a given set of data or the lowest point on a function's graph.

Opportunity Cost

Giving up possible rewards from different alternatives by choosing one path.

Attending Class

The act of being present at scheduled educational lessons or seminars.

Highest Valued Alternative

The next best choice or option that must be forgone to pursue a certain action or investment, often considered in opportunity cost calculations.