A firm's opportunity costs of production amount to its

Question

Quizplus · Accepted Answer

Opportunity cost of production includes both explicit costs (such as wages, rent, and raw material costs) and implicit costs (such as the opportunity cost of the owner's time and the foregone income from using resources for one purpose instead of another). So, option C, which includes both explicit and implicit costs, represents the firm's opportunity cost of production. Total revenue (option D) is not relevant to opportunity cost.

A Firm's Opportunity Costs of Production Amount to Its