Which of the following is part of a firm's opportunity costs? I. wages
II) utility costs
III) interest on a bank loan
IV) interest forgone on funds used to buy capital equipment
A) I and II
B) III and IV
C) I, II and III
D) I, II, III and IV

Question

Quizplus · Accepted Answer

Opportunity costs include all costs of using resources for a particular purpose, including explicit costs like wages, utility costs, and interest on loans, as well as implicit costs like interest forgone on funds used for capital equipment.

Which of the Following Is Part of a Firm's Opportunity