Question

Which of the following best explains why any determination of cost must go beyond counting the money involved?

A. Calculations of cost and benefit are subjective

B. Most people do not know how much things cost

C. Profit is more accurate measurements of benefits

D. Large amounts of money cannot be accurately counted

Answer 1

Answer: A. Calculations of cost and benefit are subjective.

Explanation: I took the Test.

Answer 2

Option (A).

Calculations of cost and benefit are subjective best explains why any determination of cost must go beyond counting the money involved.

Explanation:

Cost is the price you pay in exchange of a commodity, good or service. It is also the measure of the value of that good, service or commodity. The cost is never more than the marginal utility of that product, it is always more than it.

Determination of cost is an important economic activity which refer to the determination of the price of any good or service that is being sold or purchase in a market. In a free market system, cost determination is based on two factors- demand and supply