The amount of money that a wheat farmer could have earned if he had planted barley instead of wheat is
A)an explicit cost.
B)an accounting cost
C)an implicit cost.
D)forgone accounting profit.

Question

Quizplus · Accepted Answer

The amount of money that a wheat farmer could have earned if he had planted barley instead of wheat is the opportunity cost or forgone alternative, which is an implicit cost. It represents the value of the next best alternative forgone or sacrificed by choosing the current option.

The Amount of Money That a Wheat Farmer Could Have