Which of the following would be categorized as an opportunity cost? a. not being able to spend your $10,000 savings if you sink the money in 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 benefits or profits that could have been achieved from an alternative option that was not chosen. In this case, not being able to spend the $10,000 savings represents the opportunity cost of investing in the business. The cost of purchasing supplies or insurance represents a direct expense of the business and not opportunity cost.

Which of the Following Would Be Categorized as an Opportunity