The Rate of Return Available on the Next Best Investment

question 120

True/False

The rate of return available on the next best investment alternative for the saver refers to the opportunity cost of funds.

---

Definitions:

Breakeven Point

The point at which total costs and total revenue are equal, resulting in no net loss or gain for the business.

Total Cost

The complete cost of production or operation, including both fixed and variable costs.

Total Revenue

The total amount of income generated by the sale of goods or services related to a company's primary operations.

Odd Pricing

Psychological pricing strategy in which goods are priced at, say, $9.99 rather than $10.00 in the belief that the price will seem lower than it really is.