Which Statement Represents a Rational Application of Opportunity Cost

question 100

Multiple Choice

Which statement represents a rational application of opportunity cost?

• A) The value of the choice must be greater than or equal to the cost of the next-best alternative.
• B) The value of the next-best alternative must be greater than or equal to the cost of the choice.
• C) Opportunity cost is useful for evaluating a decision after the fact,but not during the decision-making process.
• D) The value of the choice must be greater than the sum of all available alternatives.
• E) The value of the next-best alternative is irrelevant since the alternative was not selected.

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Definitions:

Preparation

The process of getting ready for a specific event, activity, or undertaking by planning and arranging the necessary components.

Customer Understanding

The process and result of comprehending customers' needs, preferences, and behaviors.

Trial Close

A technique used in sales to gauge a potential buyer's interest or objections by asking for their opinion or commitment before the final close.

Objection

A concern or argument raised by a potential buyer that indicates hesitance or refusal to purchase a product or service.