Which of the Following Phrases Most Accurately Describe Opportunity Cost

question 14

Multiple Choice

Which of the following phrases most accurately describe opportunity cost?

• A)the cost incurred to gain the opportunity to make a sale
• B)the benefit gained by choosing a certain course of action
• C)the benefit given up by not choosing an alternative course of action
• D)costs which have been incurred in the past

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Definitions:

Expand

To increase in size, number, or scope, such as a business growing its operations or a market increasing its reach.

Internal Economies

Cost-saving measures that arise from the expansion of a firm, affecting the production process internally.

External Economies

Benefits that a firm obtains due to the actions of others or external factors, leading to reduced costs.

External Economies of Scale

Cost advantages that a firm obtains due to the expansion of the industry in which it operates, but not due to its own expansion.