The Concept of Opportunity Cost

question 5

Multiple Choice

The concept of opportunity cost

• A) is relevant only to economics.
• B) can be applied to the analysis of any decision-making process.
• C) applies to consumers but not to firms.
• D) refers only to actual payments and incomes.

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Definitions:

Risks

The potential for loss or damage when a threat exploits a vulnerability.

Recommendations

Suggestions or proposals as to the best course of action, especially one put forward by someone with expertise or authority.

External

Pertaining to factors, influences, or conditions that exist or originate outside of an organization or system.

Unsolicited Proposal

A proposal submitted to an organization without their request, often aiming to solve a problem or offer services.