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Which of the following statement(s) are CORRECT? Select one: a. Both total opportunity cost is defined...

Which of the following statement(s) are CORRECT? Select one: a. Both total opportunity cost is defined as the sum of direct costs and indirect cost relevant to a choice and you may accept an unfavorable choice if opportunity cost is not taken into consideration. b. One should overestimate opportunity cost in order to make a sound financial decision. c. Total opportunity cost is defined as costs directly associated with a choice. d. Total opportunity cost is defined as the sum of direct costs and indirect cost relevant to a choice. e. You may accept an unfavorable choice if opportunity cost is not taken into consideration.

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Answer #1

The correct statement is

a. Both total opportunity cost is defined as the sum of direct costs and indirect cost relevant to a choice and you may accept an unfavorable choice if opportunity cost is not taken into consideration.

Opportunity cost is the value of benefit lost

It is relevant as it represents the value lost due to acceptance of an alternative and should be taken into account for sound decisiona dn ignorance may lead to wring decision

Both direct and indirect costs are considered

Should not overestimate, but take the real costs into account

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