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.

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Definitions:

Elastic

Refers to the degree to which the demand or supply for a product or service changes in response to a change in price.

Downsloping

Describing a curve or line that moves from a higher to a lower point, often used to illustrate the downward trend in price and quantity relationships in economics.

Marginal Revenue Curve

A graphical representation showing how the revenue from selling one additional unit varies.

Horizontal

A line or direction parallel to the ground or to the bottom edge of a page, representing equality or uniformity in a graphical representation.