Money costs and opportunity costs are concepts that are
A)not related in any meaningful way.
B)used by tax accountants.
C)related through 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 relative prices of goods and services. The opportunity cost of a decision is the value of the next best alternative that must be sacrificed in order to pursue that decision. This opportunity cost can be compared to the monetary cost of the decision, which is the actual amount of money spent. The relationship between these costs can help individuals and businesses make informed decisions about how to allocate their resources.

Money Costs and Opportunity Costs Are Concepts That Are