MANAGEMENT

Detailed explanation-1: -Opportunity cost is a term in economics used to describe benefits that are lost when choosing one option over another. In short, it’s a value of the road not taken. Opportunity costs are easy to overlook, but understanding missed opportunities is crucial to better decision making in business.

Detailed explanation-2: -Opportunity cost (also known as “alternative cost, ”) is the difference between a project’s cost estimate and another option that must be foregone in order to implement the project. Every choice we make also means giving up another option.

Detailed explanation-3: -Answer and Explanation: Of the given statements about opportunity costs, (a) III only is TRUE. I. The opportunity cost of a given action is equal to the value foregone of all feasible alternative actions.

Detailed explanation-4: -What is the Opportunity Cost of Capital? The opportunity cost of capital is the incremental return on investment that a business foregoes when it elects to use funds for an internal project, rather than investing cash in a marketable security.