Which of the following statements about opportunity costs is the most accurate?
A) They never involve costs paid out-of-pocket.
B) They include only explicit costs paid out-of-pocket.
C) They always include costs paid out-of-pocket.
D) They may or may not involve costs paid out-of-pocket.

Question

Quizplus · Accepted Answer

Opportunity costs can involve both costs paid out-of-pocket (explicit costs) as well as foregone opportunities or potential income (implicit costs). Therefore, option D is the most accurate statement.

Which of the Following Statements About Opportunity Costs Is the Most