Question

Lacey designs dresses. She can keep designing casual dresses that bring $65 but are easy to sell, or

she could design formal gowns that sell for $500 but must be high fashion. She takes a risk on formal
gowns
a. The opportunity cost is

Answer 1

$65

Explanation:

opportunity cost of the next best option forgone when one alternative is chosen over other alternatives

By making formal gowns, she is forgoing the opportunity to earn $65 making casual dresses. this is her opportunity cost