If the Total Cost of Alternative a Is $50,000 and the Total

question 56

Multiple Choice

If the total cost of alternative A is $50,000 and the total cost of alternative B is $34,000, then $16,000 is termed the:

• A) opportunity cost.
• B) average cost.
• C) sunk cost.
• D) out-of-pocket cost.
• E) differential cost.

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Definitions:

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