The Potential Benefits Lost by Taking a Specific Action When

question 182

Multiple Choice

The potential benefits lost by taking a specific action when two or more alternative choices are available is known as a(n) :

• A) Out-of-pocket cost.
• B) Sunk cost.
• C) Alternative cost.
• D) Opportunity cost.
• E) Differential cost.

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Definitions:

Lowest Price

The minimum price at which a product or service is offered in the market.

Short Run

A period in economic theory during which at least one input is fixed while others are variable.

Short Run

A period in economics during which the quantities of some inputs, typically capital, cannot be changed, affecting how firms adjust production levels.

Long Run

A period of time in economics during which all inputs, including capital and labor, can be adjusted, and all markets are in equilibrium.