What is the impact on firms if opportunity costs are ignored?

Question

Quizplus · Accepted Answer

Ignoring opportunity costs can lead to firms underestimating the true cost of production and overestimating their profits. This can result in poor decision-making, such as producing goods at a higher cost than they are worth or investing resources in projects that are not profitable in the long run. In the case of economic losses, ignoring opportunity costs can make a firm believe that they are profitable when they are actually losing money.

What Is the Impact on Firms If Opportunity Costs Are