(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.

Respuesta :

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.


The scenario that best depict an example of opportunity cost is when "a computer company produces fewer laptops to meet tablet demand"

What is an opportunity cost?

An opportunity cost refers to a value of what is rejected in order to perform the chosen alternative.

Hence, the scenario when "a computer company produces fewer laptops to meet tablet demand" is an example of opportunity cost.

Therefore, the Option B is correct.

Read more about opportunity cost

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