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Pachacha [2.7K]
3 years ago
12

The amount of income that would result from an alternative use of cash is called:_______.

Business
1 answer:
Digiron [165]3 years ago
7 0

Answer:

The answer is opportunity cost

Explanation:

Opportunity cost is the cost of an alternative forgone action. The cost of an action not taken. For example, Mr A had the chance to choose between job X and job Y, if he chooses job X, the salary that job Y will pay if he had chosen them will be the opportunity cost.

Therefore, the amount of income that would result from an alternative use of cash is the OPPORTUNITY COST.

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