Final answer:
The question involves the understanding of opportunity costs in business decisions, exemplified by Tabitha's choice to create new advertisements over rebuilding her website. This economic principle is essential in business as it helps to determine the most productive and profitable use of resources.
Step-by-step explanation:
The concept described in the question relates to opportunity costs, which is a fundamental idea in economics that applies to business decisions. An opportunity cost represents the benefits an individual, investor, or business misses out on when choosing one alternative over another. In the context given, Tabitha is considering the opportunity costs associated with creating new advertisements versus rebuilding her website. She has chosen to focus on creating new advertisements because the opportunity cost of not doing so is presumably higher than the cost of not updating the website.
For example, Eryn's decision to open her own business despite earning $10,000 less than working for a corporate firm involves weighing the opportunity cost of missing out on higher income against the benefits of entrepreneurship. Similarly, when Maria calculates her opportunity cost for producing lattes versus sandwiches, she's determining what she is giving up in terms of sandwich production when she decides to make lattes.
Another illustration is an individual who is more productive and thus potentially earns more income at her consulting job than by growing vegetables. It makes economic sense to apply labor to the most productive use. This concept also tells us that the costs in producing different goods and services, such as cars, computer software, haircuts, or fast-food meals, will vary significantly.