- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 1. The Firm and Market Structures
- Subject 3. Marginal Revenue, Marginal Cost and Profit Maximization
CFA Practice Question
Consider the following statements:
II. The opportunity cost of undertaking an activity is the benefit forgone by NOT undertaking the next best alternative.
I. Marginal cost is the additional cost incurred in undertaking an activity.
II. The opportunity cost of undertaking an activity is the benefit forgone by NOT undertaking the next best alternative.
Which one(s) is (are) true?
A. I and II
B. I only
C. II only
User Contributed Comments 5
User | Comment |
---|---|
dipu617 | Is not marginal cost the additional cost incurred for undertaking an additional unit of activity or product? |
jejasin | Yeah I said C because I though MC was just the additional cost for 1 more unit of output... |
Shaan23 | I said C as well. You could've studies forever but if you dont do questions -- FAIL |
farhan92 | anyone know why this is I is correct. Marginal is one additional unit... |
hon132 | Assume "an" is singular in nature, they're not asking you to do it twice. |