Opportunity costs are technically referred to as _________________.

Implicit cost of capital

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Explicit cost of capital

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Marginal cost

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Fixed and variable costs

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Solution

The correct option is C Implicit cost of capital
The opportunity cost, or alternative cost, of making a particular choice is the value of the most valuable choice out of those that were not taken. When an option is chosen from alternatives, the opportunity cost is the "cost" incurred by not enjoying the benefit associated with the best alternative choice.

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