If Ruapehu Inc.doesn't use one of its limited resources in the best possible way,the lost contribution to income could be called a(n):
A)fixed cost.
B)sunk cost.
C)variable cost.
D)opportunity cost.

Question

Quizplus · Accepted Answer

The lost contribution to income when a limited resource is not used in the best possible way is an opportunity cost. This cost represents the value of the next best alternative that is forgone. It is important for businesses to consider opportunity costs when making decisions about resource allocation to ensure that they are getting the most out of their resources. Therefore, the best choice is option D, opportunity cost.