The opportunity costs of the firm using its own funds are measured by the: Select one:...

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Question

The opportunity costs of the firm using its own funds are measured by the: Select one:...

The opportunity costs of the firm using its own funds are measured by the:

Select one:

a. market interest rate

b. inflation rate

c. price level

d. menu costs

business economics

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Answer 1

Answer #1

ANswer

Option a

Market interest rate

the opportunity cost of the funds is the market interest rate which includes inflation and real interest rate itself.

the other all options cover only inflation as the inflation, price level also means inflation and menu costs also called for an increase in the price level or inflation costs.

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Answer 2

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