ECONOMICS
OPPORTUNITY COST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Either A or B
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None of the above
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Detailed explanation-1: -"The opportunity cost of time is usually measured by wage, ” explains Hurst. “If you take an hour that could be spent working and devote that hour to another activity, you give up potential income.
Detailed explanation-2: -The given statement is true. Opportunity cost is defined as the next best alternative, which is forgone. It implies that this cost is the potential benefit that an individual or a firm might have gained or missed out from choosing the next best alternative.
Detailed explanation-3: -Answer and Explanation: The correct answer is c. Some decisions have zero opportunity costs. Opportunity costs refer to the value of the next best alternative forgone.
Detailed explanation-4: -It does not take into consideration, the cost of time.