Which of the following would be categorised as an opportunity cost?
A.not being able to spend your $10 000 savings if you sink the money into your business
B.the cost of purchasing supplies for your house-cleaning business
C.the cost of purchasing auto insurance for your dry-cleaning delivery business
A)a only
B)a and c only
C)b and c only
D)all of the above

Question

Quizplus · Accepted Answer

Opportunity cost refers to the cost of foregone alternatives, and in this scenario, the cost of not being able to spend the $10,000 savings on other things is the opportunity cost. The cost of purchasing supplies or auto insurance is a regular business cost and not an opportunity cost.

Which of the Following Would Be Categorised as an Opportunity