The Difference in Total Costs Between Two Alternatives Is Referred

question 27

Multiple Choice

The difference in total costs between two alternatives is referred to as the:

• A) direct cost.
• B) incremental cost.
• C) opportunity cost.
• D) sunk cost.

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Definitions:

Units of Guns

A numerical measure representing the quantity of firearms, often used in discussions or models concerning economics or policy.

Units of Butter

A measure used to quantify butter in terms of recognized units, such as pounds or kilograms, often used in economic models as an example of a commodity.

Maximum Total Number

The highest possible aggregate count or quantity of a particular item or entity within a defined context.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision, representing the benefits one misses out on when choosing one option over another.