Those things that must be forgone to acquire a good are called

Question

Quizplus · Accepted Answer

Opportunity costs refer to the things that we have to give up in order to gain something. It is the cost of the next best alternative that we forego when we make a decision. Implicit costs refer to the opportunity costs of using resources that the firm owns rather than selling them to others for cash, while explicit costs refer to actual monetary payments made to others in exchange for resources used in production. Accounting costs, on the other hand, refer to the actual expenses incurred by a firm in running its operations. Therefore, option B is the correct answer.

Those Things That Must Be Forgone to Acquire a Good