Which of the following principles is critical to understanding how a company owner negotiates a deal to its greatest advantage?
A)market equilibrium
B)opportunity cost
C)accounting profits
D)fixed costs

Question

Quizplus · Accepted Answer

Understanding the concept of opportunity cost is critical in negotiations as it helps the company owner determine the value of different options and choose the one that offers the greatest advantage. By considering the opportunity cost of each option, the owner can make the most informed decision and come out on top in the negotiation. Market equilibrium, accounting profits, and fixed costs may also be relevant factors in negotiations, but they are not as foundational as the concept of opportunity cost.

Which of the Following Principles Is Critical to Understanding How