CFA Practice Question

There are 539 practice questions for this study session.

CFA Practice Question

Consider the following statements:

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.
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