Download App

FUNDAMENTAL CONCEPTS OF COST — Commercial Studies STD 10 — Question

ICSE BoardEnglish MediumSTD 10Commercial StudiesFUNDAMENTAL CONCEPTS OF COST2 Marks
Question
What is meant by opportunity cost? Give an example.
✓

Answer

Opportunity cost means the benefit foregone for the second best use of resources. For example, a firm can buy either a laptop or a motorcycle for ₹40,000. The firm buys a laptop. The earning or benefit which the motorcycle could provide is the opportunity cost of buying the laptop.

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Explore more

More "[2 Mark Question Answer]" from FUNDAMENTAL CONCEPTS OF COST→FUNDAMENTAL CONCEPTS OF COST — all question types→Commercial Studies STD 10 question papers→ICSE Board STD 10 question papers→ICSE Board question paper generator→

Similar questions

Name and explain the type of training designed to correct mistakes.
→
What is IDR?
→
What is the need of the profit and loss account
→
State any two factors to be kept in mind while preparing the sales budget of an organisation.
→
What is discounting of a bill of exchange?
→
Write a short note on Debentures.
→
Give two points of distinction between balance sheet and trial balance.
→
Pricing is not an end in itself but a means to achieve marketing objectives of the firm. How does pricing aid in meeting or prevent competition?
→
State two disadvantages of water transport.
→
State any four sustainable uses of water.
→