Money costs and opportunity costs are concepts that are
A)not related in any meaningful way.
B)used by tax accountants.
C)related through the relative prices of goods and services.
D)used by economists to learn the most efficient level of output.

Question

Quizplus · Accepted Answer

Money costs and opportunity costs are related through the concept of relative prices. Money costs refer to the actual monetary expenses incurred in acquiring a good or service, while opportunity costs refer to the value of the best alternative option forgone in choosing one course of action over another. The relative prices of goods and services affect both types of costs, as higher prices for one option may make the other option more economically attractive due to lower opportunity costs. Hence, money costs and opportunity costs are intertwined in economic decision-making.

Money Costs and Opportunity Costs Are Concepts That Are