________ refer to the value forgone in order to make one particular investment instead of another.

Question

Quizplus · Accepted Answer

Opportunity costs refer to the value of the next best alternative that must be forgone in order to pursue a certain action or investment. Sunk costs are costs that have already been incurred and cannot be recovered, so they are not relevant in decision making. Relevant costs are costs that are directly related to a particular decision, while irrelevant costs have no impact on the decision. Therefore, the correct answer is A) Opportunity costs.

________ Refer to the Value Forgone in Order to Make