Opportunity Cost Is the Value of the Next-Best Alternative That

question 91

True/False

Opportunity cost is the value of the next-best alternative that is given up as a result of making a particular choice.

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Definitions:

Conditional Sales Contract

A type of contract in which the sale itself is contingent on approval; can be either a sale-on-approval contract or a sale-or-return contract.

Lease Contracts

Agreements in which one party (the lessor) grants another party (the lessee) the right to use property, equipment, or facilities for a specified time in exchange for payment.

Sale-Or-Return Contract

A contract in which the buyer and seller agree that the buyer may return the goods at a later time.

Voidable Title

Title that occurs in situations in which the contract between the original parties would be void, but the goods have already been sold to a third party.