Real cost is - JAMB Economics 2023 Question
Real cost is
A
Alternative commodities forgone
B
Amount of money spent on goods and services
C
Cost of goods and services
D
True cost
correct option: a
Real Cost is typically associated with the alternative commodities forgone, which is the essence of opportunity cost.
It represents the value of the next best alternative that must be sacrificed when a choice is made.
Cost of goods and services, on the other hand, refers more to the actual monetary or resource expenses involved in producing a good or service, not considering the trade-off with alternative uses.
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