A florist paid $1,200 for 500 glass vases. The florist has used 300 of the glass vases and is holding the remaining 200 vases in inventory. The current market price for the 200 pieces of hardware is $600. What is the opportunity cost of holding the 200 vases in inventory?

Question

Quizplus · Accepted Answer

The opportunity cost of holding the 200 vases in inventory is the current market value of those vases, which is $600. This represents the potential revenue the florist forgoes by not selling them at the current market price.

A Florist Paid $1,200 for 500 Glass Vases