A firm's total 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

The firm's total opportunity cost of production includes all resources used in production, regardless of whether they were bought in the market, owned by the firm, or supplied by the owner. Therefore, options A, B, and C are incomplete answers, and option D is only partially correct. Option E includes all possible resources used in production and is the best choice.

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