Among the opportunity costs of a firm are all of the following EXCEPT
A) economic profits.
B) normal profits.
C) the owner's forgone wage.
D) the cost of resources bought in markets, such as labour.

Question

Quizplus · Accepted Answer

Economic profits are not considered an opportunity cost. Opportunity costs refer to the benefits a firm misses out on when choosing one alternative over another. Economic profits are the surplus after all costs, including opportunity costs, have been subtracted from total revenues, thus not an opportunity cost themselves.

Among the Opportunity Costs of a Firm Are All of the Following