Hutch Technology makes computer monitors, which sell for $500 each. What is the opportunity cost of producing ten monitors?
A) $5,000
B) the other goods that could be produced with the resources that produce the ten monitors
C) the profits that Hutch earns when it sells the ten monitors
D) the profits that Hutch loses if it does not produce the monitors
E) All of the above are correct.

Question

Quizplus · Accepted Answer

The opportunity cost is the value of the next best alternative foregone, which in this case is the other goods that could be produced with the resources used to produce the ten monitors.

Hutch Technology Makes Computer Monitors, Which Sell for $500 Each