WebThe opportunity cost of holding cash in your wallet None of the choices are correct. is the foregone interest that could have been earned on other assets. is zero. tends to increase … WebDec 12, 2024 · The opportunity cost is the value of the next best alternative foregone. In simplified terms, it is the cost of what else one could have chosen to do. Considering Alternative Decisions. Principles of management accounting or corporate finance dictate that opportunity costs arise in the presence of a choice. If there appears to be only one ...

The opportunity cost of holding money is: A) the level of income. B …

WebThe opportunity cost of holding money rather than bonds is A) the rate of interest earned on bonds. B) the price level. C) forgone consumption. ... If the annual market interest rate is 20%, the annual opportunity cost of having $50 cash in your pocket is A) $0. B) $2. C) $10. D) $50. E) $1000. A C. 23 Q coffee shops in linden hills

What is the opportunity cost of holding money? - Quora

WebFeb 5, 2007 · By Russell Roberts. “To get the most out of life, to think like an economist, you have to be know what you’re giving up in order to get something else.”. O ne of the challenges of being an economist is explaining what you do for a living. People understand that one of the things a professor of economics does is teach economics. WebInventory holding cost = (Storage costs + Employee salaries + Opportunity costs + Depreciation costs) / Total value of annual inventory. Inventory holding cost = ($20,000 + $30,000 + $15,000 + $10,000) / $100,000. Inventory holding cost = .75, or 75%. In this case, the art store’s inventory holding cost is extremely high. WebJan 29, 2024 · The opportunity cost is time spent studying and that money to spend on something else. A farmer chooses to plant wheat; the opportunity cost is planting a different crop, or an alternate use of the … coffee shops in lima ohio