Which of the following is part of a firm's opportunity cost of production? I.wages
II.utility costs
III.interest on a bank loan
IV.interest forgone on funds used to buy capital equipment
A)I only
B)II only
C)III only
D)IV only
E)I,II,III,and IV

Question

Quizplus · Accepted Answer

Opportunity cost includes all costs associated with a decision, not just explicit costs like wages, utility costs, and interest on loans, but also implicit costs such as the interest forgone on funds used to buy capital equipment.

Which of the Following Is Part of a Firm's Opportunity