Question

Question 9 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 not to open
the new branch in China?
A. The business would increase its marginal benefits on each
product it makes
O B. The business would have to open a new branch in a different
country
C. The business would lose the chance to make more money in
China.
D. The business would be able to use the money it saves on other
projects.

Answer 1

C.

Step-by-step explanation:

Opportunity cost is the forgone benefit that would have been derived from an option not chosen. In this case, the lost is the potential profit they might make, which is C.