Business help: Opportunity cost
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Which one of the following is an example of an opportunity cost
1. Revenue lost from sale of cakes by deciding to sell only cookies
2. Wages paid to construction workers
3. Materials used to assemble computers
4. Ordering costs related to a customer's special order of guitar strings
5. Rent paid for the use of a factory building.
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Solution Summary
228 words with a reference explains which of the given options is an example of opportunity cost.
Solution Preview
Opportunity cost is the price of the chosen good, relative to the next best alternative. The opportunity cost or alternative costs are the returns from the second best use of the organization's resources or here in this case the individual's ...
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