A firm's opportunity cost of production is the sum of the cost of using resources
A)bought in the market.
B)owned by the firm.
C)supplied by the firm's owner.
D)bought in the market and supplied by the firm's owner.
E)bought in the market,owned by the firm,and supplied by the firm's owner.

Question

Quizplus · Accepted Answer

Opportunity cost includes all the resources used in production, whether bought in the market, owned by the firm, or supplied by the firm's owner. Therefore, the correct answer is the choice that includes all of these options, which is E.

A Firm's Opportunity Cost of Production Is the Sum of the Cost