contestada

an investor is offered two opportunities, A and B. A generates $52000 and B generates $21000. What is the opportunity cost if the investor chooses A

Respuesta :

Parrain

The opportunity cost of the Investor choosing Investment A is the payoff of $21,000 from B.

What is Opportunity Cost?

  • It represents the implicit cost we incur for making one decision instead of another.
  • It is quantified as the payoff that would have been made if the other decision was chosen.

The opportunity cost of choosing investment  A in this scenario will therefore be the amount that would have been earned from investment B which is $21,000.

Find out more on opportunity cost at https://brainly.com/question/481029.