Opportunity cost is:
Options
ADirect cost
BTotal cost
CAccounting cost
DCost of next best alternative foregone
For any discrepancies in this question, email contact@cadada.in
Theory of Production and CostPYQ - Jan 2021Question 47 of 20
All Questions Correct Answer
✅ Option d — Cost of next best alternative foregone
All Options:
- ADirect cost
- BTotal cost
- CAccounting cost
- DCost of next best alternative foregone
About This Chapter: Theory of Production and Cost
Paper
Paper 4: Business Economics
Weightage
10%
Key Topics
Function, Cost Concepts (Short/Long Run)
This chapter explores how firms produce goods and services. It covers Production Functions, the Laws of Returns (Increasing, Constant, Diminishing), and all cost concepts including Total Cost, Average Cost, Marginal Cost, Fixed Cost, and Variable Cost. Understanding why the AC and MC curves are U-shaped is crucial for exam success.
View Official ICAI SyllabusExam Strategy Tip
The relationship between MC and AC curves is a favorite examiner topic. Remember: MC cuts AC at its minimum point. Also focus on the difference between Short Run and Long Run cost curves.
Key Concepts to Understand
Related Comparison Tables
More Questions from Theory of Production and Cost
Ready to Master Theory of Production and Cost?
Practice all 20 questions with instant feedback, earn XP, track your streaks, and ace your CA Foundation exam.
Start Practicing — It's Free