To an economist, total cost is total accounting cost plus opportunity costs not measured in accounting costs.

Question

Quizplus · Accepted Answer

Total cost includes both accounting costs (such as salaries, rent, and material costs) and opportunity costs (such as the value of foregone alternative uses of resources). Opportunity costs are not always measured in accounting costs but are important to consider in economic decision-making.

To an Economist, Total Cost Is Total Accounting Cost Plus