Economists Consider Which of the Following Costs to Be Irrelevant

question 54

Multiple Choice

Economists consider which of the following costs to be irrelevant to a short-run business decision?

• A)opportunity cost
• B)out-of-pocket cost
• C)historical cost
• D)replacement cost

---

Definitions:

Franchise Territory

The specific geographic area granted to a franchisee by the franchisor in which to operate and market the franchised business.

Franchise Termination

The legal ending or discontinuation of a franchise agreement, often involving specific conditions or procedures.

Court Determination

A formal decision or judgment made by a court following a legal proceeding.

Fair Dealing

A legal doctrine aiming to ensure honesty and fairness in transactions and agreements, preventing parties from taking advantage of each other.