Question

A glass-making company has decided it is not generating enough profit because its production costs are too high. To reduce these costs, the company wants to replace the employees who make glass by hand with new machines. This switch will result in lower quality products, which must be sold a lower price. However, the company's profits will increase because its production costs are lower. Based on what you have read, what is the opportunity cost of the glass-making company’s decision? a higher quality item a greater profit a loss of equipment a longer production time

Answer 1

a high quality item is the anwser. just answered this one!

Answer 2

The correct answer is A) a high quality item

The opportunity cost of the glass-making company decision is a high quality item.

The glass-making Company has a problem. It was not generating enough profit because its productions costs were too high. The Company had to make a decision. They decided to reduce costs by replacing people with new machines. The Company is sacrificing quality and they are going to reduce the price of the products. This way the production cost is lower and the profits are going to increase. The end result of the opportunity cost of the glass-making company decision is a high quality item. The opportunity cost is the benefit for the Company after making the decision.