Which of the following is the best example of opportunity cost?
A)a company's expenditures on a training program for its employees
B)the rate of return on a company's investment
C)the amount of money that a company can earn by depositing excess funds in a money market fund
D)the profit that a company forgoes when it decides to drop one product line in favor of another one

Question

Quizplus · Accepted Answer

Opportunity cost refers to the benefits that you forgo when you choose one alternative over another. In this case, the profit that the company forgoes when it decides to drop one product line in favor of another one is the opportunity cost.

Which of the Following Is the Best Example of Opportunity