What does cost refer to
A)a seller's producer surplus
B)a seller's opportunity cost
C)a seller's consumer surplus
D)a seller's willingness to buy

Question

Quizplus · Accepted Answer

Cost refers to a seller's opportunity cost, which is the value of the next best alternative that must be foregone to pursue a certain action or decision. It is the cost of the resources used in the production process, such as labor, materials, and overhead expenses. Therefore, choice B, a seller's opportunity cost, is the best answer.

What Does Cost Refer to