The opportunity cost and the money cost of a good
A)can be the same in a well-functioning free market.
B)are never the same.
C)matter only to the purchaser of the good.
D)are not reflected in its price.

Question

Quizplus · Accepted Answer

In a well-functioning free market, the opportunity cost and money cost of a good can be the same. This is because the price of a good in a free market reflects the opportunity cost of producing the good, and consumers are free to choose whether or not to purchase the good based on their own opportunity cost. Therefore, if the market is functioning well, the opportunity cost and money cost of a good will be equal.

The Opportunity Cost and the Money Cost of a Good