How are money cost and opportunity cost related to each other?
A)If markets function well, they are closely related.
B)They are always identical in any economic system.
C)Opportunity cost always exceeds money cost.
D)Money cost is less than or equal to opportunity cost.
E)In a market economy, they are always equal to each other.

Question

Quizplus · Accepted Answer

If markets function well, money cost and opportunity cost are closely related because the price of a good or service reflects the value of the next best alternative foregone.

How Are Money Cost and Opportunity Cost Related to Each