________ Refer to the Value Forgone in Order to Make

question 84

Multiple Choice

________ refer to the value forgone in order to make one particular investment instead of another.

• A)Opportunity costs
• B)Sunk costs
• C)Relevant costs
• D)Irrelevant costs

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Definitions:

Profit

The financial gain that results when the revenues generated from business activities exceed the expenses, taxes, and costs incurred.

Competitive Market

A market structure characterized by many buyers and sellers, where all entities have little to no power to influence prices or market conditions.

Transaction Costs

Transaction costs are expenses incurred when buying or selling goods or services, including the costs of searching for information, negotiations, and enforcement of contracts.

Spread

The difference between two values, such as the bid and ask prices in financial markets, or the range in statistical data.