The real cost of producing a good is:
A) the dollar cost of inputs used to make the item.
B) the opportunity cost of producing the good.
C) the resources that were used to make the good.
D) the dollar amount it costs to sell the good.

Question

Quizplus · Accepted Answer

The real cost of producing a good is not just the dollar cost of inputs used to make the item (option A) or the dollar amount it costs to sell the good (option D). It is also not just the resources that were used to make the good (option C), as that doesn't take into account the opportunity cost of producing the good. The opportunity cost includes the value of the next best alternative that was forgone when choosing to produce the good. This is the best choice because it includes all relevant costs of production.

The Real Cost of Producing a Good Is