Question

Assessing opportunity cost involves

Answer 1

Using opportunity cost is important when evaluating a potential investment. When doing this analysis, one evaluates the expected return of the investment compared to the opportunity cost, which is the expected return of an alternative investment of equal risk.

This analysis requires hypothesizing costs and business decision making.

It is fair to say that Assessing opportunity cost involves cost analysis and decision making.

Answer 2

Assessing opportunity cost involves making choices and dealing with consequences.