Asked by WillIam Cunkle on Jul 06, 2024
Verified
The amount of income that would result from an alternative use of cash is called opportunity cost.
Opportunity Cost
The cost of forgoing the next best alternative when making a decision.
Alternative Use
Alternative use pertains to the different ways in which an asset or resource can be utilized apart from its current or primary purpose.
Cash
Money in the form of coins or banknotes, especially that held to conduct day-to-day transactions.
- Acquire an understanding of the concepts and practical applications of sunk cost and opportunity cost.
Verified Answer
ZK
Zybrea KnightJul 09, 2024
Final Answer :
True
Explanation :
This is correct definition of opportunity cost.
Learning Objectives
- Acquire an understanding of the concepts and practical applications of sunk cost and opportunity cost.