Which scenario is the best example of an opportunity cost

Asked by admin @ in Social Studies viewed by 369 People

(please hurry)Which scenario is the best example of an opportunity cost?

A.) A computer company issues a recall on its tablets.
B.) A computer company produces fewer laptops to meet tablet demand.
C.) A computer company reduces the price on last year’s models.
D.) A computer company stops making computers with CD/DVD drives.

Answered by admin @


The correct answer is B.

The opportunity cost reflects the value of what is rejected in order to perform the chosen alternative. In this case, the company decides to increase the amount of tablets produced, but given a fixed endownment of inputs, if they want to increase the tablet production they would need to decrease the supply of other product. Actually, the firm decreases the number of laptops manufactured.




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