Opportunity Cost Is Defined as

question 248

Multiple Choice

Opportunity cost is defined as

• A) the value of the next-best alternative that must be sacrificed to attain a want.
• B) the least-costly means to produce output.
• C) the value of the output currently received by an individual or a corporation.
• D) the return from a given unit of labor.

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Definitions:

Weighted Average

A calculation that takes into account the varying weights or importance of different elements in a data set.

Free Cash Flow

The revenue a firm accrues post-deducting expenses associated with operational support and upkeep of its capital goods.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set, often used in accounting to find the average cost of goods sold.

Free Cash Flow

The amount of cash that a company generates after accounting for cash outflows to support operations and maintain capital assets.