Recall the Application about running a lawn-cutting business using solar-powered equipment to answer the following question(s).
-The current income you would sacrifice to start your own lawn-cutting business is part of the
A) opportunity cost of invested funds.
B) opportunity cost of starting a business.
C) cost of doing business.
D) present value of your initial investment.

Question

Quizplus · Accepted Answer

The current income sacrificed to start the lawn-cutting business represents the opportunity cost of starting the business, as it is the next best alternative foregone by choosing to pursue the business venture. The opportunity cost refers to the value of the best alternative that is given up or sacrificed for the chosen option. The cost of doing business and the present value of the initial investment would be separate components of the overall cost of starting and operating a business, while the opportunity cost relates specifically to the forgone benefits of the next best alternative.

Recall the Application About Running a Lawn-Cutting Business Using Solar-Powered