Which of the following statements is FALSE about opportunity cost? A. Opportunity cost exists only for goods with monetary valu
es. B. Cost is always foregone opportunity. C. When a person buys two items, the concept of opportunity cost applies even though she can afford to buy both items. D. Opportunity cost is the next best alternative.
A. Opportunity cost exists only for goods with monetary values.
Explanation:
Fundamentally, these are costs in economics used in analysis of a project, and it can also be used for calculation of cost benefits. It is generally known to measure or do all calculation that deals with the current and also forgone alternatives in any condition but this is mainly in economics where it is mostly used.
It is said that when a person buys two or more items, the concept of opportunity cost applies even though she can afford to buy both items and also known to be the best alternative. Here also, cost is notified as foregone opportunity.
Pure competition seems to be an economically efficient circumstance where there is already a massive quantity of international customers and retailers as well as the manufacturer would be ready for deployment.
Even though both a significant quantity of products as well as extremely similar or defined consumer items seem to be characteristics of pure competition.
Income effect - This is the increase or decrease in purchasing power brought on by changes in prices.
substitution effect-This refers to how people may buy a lower-priced product rather than a more expensiv product. This effect may change the demand for a good or service.
