The opportunity cost of a factor of production is -what it is earning in its present usewhat it can earn in the long periodwhat it can earn in some other usewhat has to be paid to retain it in its present use

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Standard XI

Economics

Causes of Increasing Returns to a Factor

The opportuni...

Question

The opportunity cost of a factor of production is ___________.

what it is earning in its present use

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what it can earn in the long period

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what it can earn in some other use

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what has to be paid to retain it in its present use

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Solution

The correct option is D what has to be paid to retain it in its present use
The opportunity cost of a factor of production that is not owned by a firm is what has to be paid to retain it in its present use. This is also termed as the explicit cost of the firm.

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The opportunity cost of a factor of production is ___________.

The correct option is D what has to be paid to retain it in its present useThe opportunity cost of a factor of production that is not owned by a firm is what has to be paid to retain it in its present use. This is also termed as the explicit cost of the firm.

The correct option is D what has to be paid to retain it in its present use
The opportunity cost of a factor of production that is not owned by a firm is what has to be paid to retain it in its present use. This is also termed as the explicit cost of the firm.