Which of the Following Statements Best Describes Opportunity Costs

question 104

Multiple Choice

Which of the following statements best describes opportunity costs?

• A) The opportunity cost of attending college is the same for all students at the same university but may differ among students at different universities.
• B) Some economic decisions have zero opportunity cost.
• C) The opportunity cost of a decision is the value of the best forgone alternative.
• D) The opportunity cost of a decision is equal to the explicit cost in monetary terms.

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Definitions:

Variable Cost

Costs that change in proportion to the level of production or sales volume.

Net Operating Income

A company's total income from its operations, excluding taxes and interest.

Monthly Sales

The total revenue generated from sales activities during a specific month.

Target Profit

The specific amount of profit a company aims to achieve within a specific period.