Opportunity cost defines the cost of an activity as the foregone benefit from the next best alternative activity.
True OR False
"True"
The opportunity cost is the next best alternative that has been given up to achieve the present activity. For example, we can play PUBG or study, if we are playing PUBG then studying is the opportunity cost.
Opportunity cost defines the cost of an activity as the foregone benefit from the next best...
The cost of an action is measured in terms of the foregone activity called sunk costs. Group of answer choices True False
QUESTION 23 Opportunity cost of an activity O a. May include both monetary costs and foregone incomes b. Is included in accounting costs c. Is known with certainty O d. Does not include monetary costs QUESTION 24
The value of one’s second best option that must be foregone (sacrificed) in order to obtain one’s best option is known as the marginal benefit. opportunity cost. income. price level. absolute advantage.
Benefit that is foregone as a result of pursuing some course of action is called a. Transfer cost b. Sunk cost c. Fixed cost d. Opportunity cost Select one: a. Sunk cost b. Fixed cost c. Opportunity cost d. Transfer cost
10. Opportunity cost a. never exist if there are alternatives. b. is irrelevant to rational choice. c. is the value of the next best alternative foregone in making a choice. d. never applies to government or public policy. 11. A rational person will a. never make mistakes in choices. b. select the choice where the expected present benefit is greater than the expected value of the costs. c. follow the Maslow Hierarchy of...
Benefit that is foregone as a result of pursuing some course of action is called Transfer cost a. b. Sunk cost Fixed cost C. d. Opportunity cost Select one: a. Opportunity cost O b. Sunk cost O c. Transfer cost O d. Fixed cost Clear my choice
accounting cost minus the marginal benefit monetary cost of an activity Question 8 The opportunity cost of attending college includes the cost of the tuition but it otherwise worked the highest valued alternative to attending college plus the cost of tuition. t studying dthe highest valued Question 9 In terms of dollars, the marginal beneft of working five days a week instead of four days a week is the wages reccived for the fifth day of work
When considering whether or not to consume a second slice of cake, an individual is following marginal thinking if she compares the total cost of consuming both the first and second slices with their total benefit before making a decision. True False The opportunity cost of a decision is the value of the best foregone alternative. True False If Xavier gives up a job in which he earns $23,000 per year in order to go to college full time, his...
Choose the correct statement: A. The opportunity cost of an activity is constant, regardless of the time of day at which you pursue the activity B. The opportunity cost of an activity you do not enjoy is zero. C. The opportunity cost of doing more of an activity is the opportunity cost of the activity. D. The opportunity cost of something is the highest-valued alternative that must be given up to get it.
Under the opportunity cost approach, the cost of each alternative includes the incremental costs and the opportunity cost True False