Which situation best illustrates an example of an opportunity cost?
A. A factory owner performs a cost-benefit analysis to decide on a
wage for her newest employees.
B. A company invests in new cell phone technology but does not
have money left over to invest in new computers.
C. An auto dealership decides to stop selling a certain brand of truck
because it has been in low demand.
D. A restaurant offers new customers discounted rates in order to
attract more loyal customers over time.

Respuesta :

Answer: The answer is B on APEX

Explanation:

When a company invests in a new cell phone technology, but does not have money left over to invest in new computers, it is an example of opportunity cost. Hence, option B holds true.

What is opportunity cost?

A cost undergone in order to spend or invest an available amount of money, such that the opportunity of gaining returns from alternative costs is missed, then it is known as the opportunity cost for an organization.

When a company invests in a new cell-phone technology, its opportunity cost is the new computers that it requires in its company for further expansion of business activities. Thus, the opportunity costs of computers is borne by the company.

Hence, option B holds true regarding an opportunity cost.

Learn more about opportunity costs here:

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