The opportunity cost of investing in a new lithotripter (a machine that pulverizes kidney stones with sound waves) is
A)defined by the dollar cost of the equipment.
B)the same for every health care provider.
C)measured by the difference between the expected revenues from selling the services of the lithotripter and the invoice cost of the machine.
D)defined by the next best use of the money invested in the equipment.
E)impossible to calculate.

Question

Quizplus · Accepted Answer

The opportunity cost of investing in a new lithotripter is defined by the next best use of the money invested in the equipment. It represents the benefits forgone by choosing to invest in the lithotripter over alternative uses of the funds, such as investing in other medical equipment or expanding the facility. The opportunity cost cannot be determined solely by the dollar cost of the equipment, as it involves the foregone benefits from the next best alternative use of the invested funds.

The Opportunity Cost of Investing in a New Lithotripter (A