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Opportunity Cost: Formula & Analysis

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

How can opportunity cost be best described?

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1.

Which of the following may be a component of a company's capital structure?

I. Long-term debt

II. Short-term debt

III. Equity

2. Carl owns a computer company. On any given day, he can produce either 500 desktop computers or 300 laptops. What's his opportunity cost if he decides to produce desktops?

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About This Quiz & Worksheet

Answer questions on opportunity cost analysis with these study assessments. For the quiz, you will be tested on areas such as an alternative course of action and a company's capital structure.

Quiz & Worksheet Goals

The worksheet and attached quiz will help you to:

  • Interpret an opportunity cost scenario
  • Assess opportunity cost when you invest in bonds
  • Identify cost of a stock market option in a given example

Skills Practiced

The worksheet and quiz will measure the following skills:

  • Reading comprehension - ensure that you draw the most important information from the related lesson on cost analysis
  • Interpreting information - verify that you can read information regarding a company's capital structure
  • Information recall - access the knowledge you've gained regarding bonds and stock options

Additional Learning

This lesson named Opportunity Cost: Formula & Analysis will teach you more about this subject. Once you've finished the lesson, you will have learned the following study goals:

  • Define opportunity cost
  • Assess its mathematical formula
  • Explain capital structure
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