Which of the Following Is Part of a Firm's Opportunity

question 4

Multiple Choice

Which of the following is part of a firm's opportunity costs? I. wages
II) utility costs
III) interest on a bank loan
IV) interest forgone on funds used to buy capital equipment

• A) I and II
• B) III and IV
• C) I, II and III
• D) I, II, III and IV

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Definitions:

Illusory Correlations

A cognitive error wherein a relationship is perceived between two variables, even when no such relationship exists.

Selective Attrition

Refers to the phenomenon where participants drop out of a study over time in a way that is not random, potentially skewing the results.

Demand Characteristics

Features of an experimental setting that lead participants to perceive and respond to what they believe are the expectations of the experimenter.

Falsifiable Theories

Theories or hypotheses that can be disproven or invalidated through empirical observation or experiment.