Exhibit 11-2 In Exhibit 11-2, opportunity cost at equilibrium is represented by area

Name: Exhibit 11-2 In Exhibit 11-2, opportunity cost at equilibrium is represented by area
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Question

Exhibit 11-2  In Exhibit 11-2, opportunity cost at equilibrium is represented by area

Quizplus · Accepted Answer

Opportunity cost is the cost of the next best alternative forgone. In Exhibit 11-2, the opportunity cost is represented by the area under the demand curve and above the supply curve, which is equal to area C. Therefore, the best choice is C.

Exhibit 11-2 in Exhibit 11-2, Opportunity Cost at Equilibrium