Q. If a commodity is provided free to the public by the Government, then
The opportunity cost of a choice is what you gave up to get it. If you have two choices - either an apple or an orange - and you choose the apple, then your opportunity cost is the orange you could have chosen but didn't. You gave up the opportunity to take the orange in order to choose the apple. In this way, opportunity cost is the value of the opportunity lost.
- the opportunity cost is zero.
- the opportunity cost is ignored.
- the opportunity cost is transferred from the consumers of the product to the tax-paying public.
- the opportunity cost is transferred from the consumers of the product to the Government.
Answer: the opportunity cost is transferred from the consumers of the product to the tax-paying public.
No comments:
Post a comment
What you have to say about this?