The term opportunity cost applies to a resource that a company ________.
A) is thinking about purchasing
B) already owns only
C) has committed to purchase only
D) already owns or has committed to purchase

Question

Quizplus · Accepted Answer

Opportunity cost refers to the cost of an alternative that must be forgone in order to pursue a certain action. Thus, it applies to resources a company already owns or has committed to purchase, as these resources could have been used differently.

The Term Opportunity Cost Applies to a Resource That a Company