The term opportunity cost refers to the
A. Amount of resources used to produce a good but not a service.
B. The most desired good or service given up when something is obtained.
C. Financial costs of all the factors of production used to produce a good or service.
D. Value of every other good given up when a good or service is obtained.
Answer: B
You might also like to view...
Social Security was established
a. in the 1930s to provide retirement income to those with a work history b. in the 1930s to provide jobs for the unemployed c. in the 1930s to provide health insurance d. in the 1960s to provide retirement income to those with a work history e. in the 1960s to provide health insurance
Suppose a buyer hires an interpreter who charges $5 to negotiate a deal with a seller. The buyer's valuation of the good is $50 and the seller's opportunity cost is $35 . If the net benefit to the buyer is equal to the same received by the seller, what is the price agreed upon by the two parties?
a. $42 b. $40 c. $44 d. $38