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Byju's Answer

Standard XI

Economics

Causes of Increasing Returns to a Factor

The opportuni...

Question

The opportunity cost of a factor of production is ___________.

what it is earning in its present use

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what it can earn in the long period

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what it can earn in some other use

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what has to be paid to retain it in its present use

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Solution

The correct option is D what has to be paid to retain it in its present use
The opportunity cost of a factor of production that is not owned by a firm is what has to be paid to retain it in its present use. This is also termed as the explicit cost of the firm.

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The opportunity cost of a factor of production is ___________.

The correct option is D what has to be paid to retain it in its present useThe opportunity cost of a factor of production that is not owned by a firm is what has to be paid to retain it in its present use. This is also termed as the explicit cost of the firm.

The correct option is D what has to be paid to retain it in its present use
The opportunity cost of a factor of production that is not owned by a firm is what has to be paid to retain it in its present use. This is also termed as the explicit cost of the firm.