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What is the general meaning of opportunity cost for an entrepreneur?

Answer and explanation

Correct answer: Benefit of the next best alternative given up because of the chosen option

Opportunity cost is the value of the next best alternative that is given up when a choice is made. For example, if an entrepreneur uses savings to open a shop instead of investing them in training or another business, the benefit of that best rejected option is the opportunity cost. It is not the same as tax, production expense, or customer-acquisition cost, so option A is correct.

Related tags

Opportunity-CostDecision-MakingAlternativesIntroduction To EntrepreneurshipEntrepreneurial Skills IArtificial IntelligenceClass 9 Mcq

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