The Most Valuable Investment Given Up If an Alternative Investment

question 83

Multiple Choice

The most valuable investment given up if an alternative investment is chosen is referred to as a(n) :

• A)salvage value expense.
• B)net working capital expense.
• C)sunk cost.
• D)opportunity cost.
• E)erosion cost.

---

Definitions:

Market Demand

The total demand for a product or service within a market, reflecting the combined desires and purchasing power of consumers.

Market Supply

The total quantity of a good or service that producers are willing and able to sell at a given price in a given period.

Equilibrium Price

The market price at which the quantity supplied of a good equals the quantity demanded, leading to a stable market condition.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a given price during a specific period.