Which of the Following Is Defined as the Cost or Forgone

question 39

Multiple Choice

Which of the following is defined as the cost or forgone opportunity of using an asset already in use by the firm, or a person already employed by the firm, in a new project?

• A) Net working capital cost
• B) Opportunity cost
• C) Shortage cost
• D) Cash cycle cost

---

Definitions:

Monopolistically Competitive

A market structure where many firms sell products that are similar but not identical, allowing for product differentiation and some control over prices.

Profit Maximizing

The process or strategy of adjusting production and sale operations to achieve the highest possible profit.

Monopolistic Competition

A market structure in which many firms sell products that are similar but not identical, allowing for elements of competition and product differentiation.

Long-Run Equilibrium

A state where all firms in a market are making zero economic profit, with no incentive for entry or exit, reflecting a balance of supply and demand.