Author Question: Which of the following statements is FALSE about opportunity cost? A) Cost is always foregone ... (Read 115 times)

dakota nelson · **on:** Jun 29, 2018

Which of the following statements is FALSE about opportunity cost?

A) Cost is always foregone opportunity.
B) Opportunity cost is the next best alternative.
C) John wants a burger and fries. The concept of opportunity cost applies even though he has enough funds to buy both.
D) Opportunity cost exists only for goods with monetary values.

Question 2

An external cost, such as the cost generated by pollution, is

A) a cost paid by consumers of the product.
B) a cost paid by producers of the product.
C) a cost paid by a third party or by society at large.
D) not a true opportunity cost of production.