Mark is an engineer who has designed a telecommunications device. He is convinced that there is a big potential market for the device. Accordingly, he has decided to quit his present job and start a company to manufacture and market the device.
-The salary that Mark earns at his present employ is:
A) a variable cost
B) a fixed cost
C) a product cost
D) an opportunity cost

Question

Quizplus · Accepted Answer

Mark's present salary is an opportunity cost because he is giving up the income he would have earned if he stayed in his current job in order to pursue the potential profits of his own business.

Mark Is an Engineer Who Has Designed a Telecommunications Device