Question

Question 10 of 10

A business must decide whether to open a new office in China. If it opens the
branch, it will increase its chances of selling a high volume of its products in
China. On the other hand, the business will have to spend a lot of money to
make the branch operational.
What would be an opportunity cost for the business if it chooses to open the
new branch in China?
OA. The business would gain access to a large number of new
customers.
OB. The business would have less money to open branches in other
countries.
OC. The business would be forced to relocate all its workers to China.
OD. The business would have to spend more money on each item it
produces.

Answer 1

The correct answer for the opportunity cost for the business if it chooses to open the new branch in China is OB. The business would have less money to open branches in other countries

Step-by-step explanation:

The correct answer for the opportunity cost for the business if it chooses to open the new branch in China is OB. The business would have less money to open branches in other countries.

Opportunity cost refers to the potential benefits or opportunities that are foregone or sacrificed when choosing one option over another. In this scenario, if the business decides to open a new branch in China, it would require a significant investment of money to make the branch operational. The opportunity cost would be that the funds used for the China branch would not be available to open branches in other countries. By choosing to invest in China, the business would be giving up the opportunity to expand its presence in other markets.