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Question text The opportunity cost rate is only applicable if you as an investor actually have...

Question text

The opportunity cost rate is only applicable if you as an investor actually have an alternative investment to compare. If you are making a decision about a single investment, the opportunity rate concept does not apply.

True or False

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Answer #1

Opportunity cost is the cost related to return of a foregone option which is lesser than the return on selected option.

Opportunity cost can even be applicable if I am not investing my money and letting it remain idle because the value will be depreciating due to factors like inflation so it can be said that even after I am taking decision about a single investment, there are other opportunities for investment of that money so it can be said that the opportunity rate will be applying even if I am taking decisions about a single investment and there will always be opportunity forgone for investing that money into the the single investment.

The given statement is FALSE

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