Opportunity cost is calculated as:
A)sunk cost plus implicit cost.
B)explicit cost plus economic cost.
C)implicit cost plus explicit cost.
D)explicit cost plus sunk cost.

Question

Quizplus · Accepted Answer

Opportunity cost is the cost of the next best alternative foregone. It is the sum of implicit cost (the opportunity cost of resources already owned and used) and explicit cost (payment made to the resources used). Therefore, option C is the correct choice as it includes both Implicit and explicit costs.

Opportunity Cost Is Calculated As