Which of the Following Statements About the Opportunity Cost of an Item

question 64

Multiple Choice

Which of the following statements about the opportunity cost of an item is the most accurate?

• A) It is the value of all available alternatives you sacrifice to get that item.
• B) It is always equal to the dollar value of the item.
• C) It is greater during periods of inflation and lower during periods of deflation.
• D) It is the highest valued alternative you give up to get that item.

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Definitions:

Container Product

A product designed to hold or contain other products, goods, or materials.

Bulk Packaging

The practice of packaging products in large containers or quantities for efficient transport and storage, typically used for wholesale.

Capacity

Maximum output of the operation of an organization.

Residual Income

A measure of net income that remains after subtracting a charge for the capital cost involved in generating that income.