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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?
A. The business would have less money to open branches in other
countries.
B. The business would gain access to a large number of new
customers.
C. The business would have to spend more money on each item it
produces
D. The business would be forced to relocate all its workers to China.

1 Answer

2 votes

Answer: If I'm not mistaken it should be that the business would have less money to spend on other branches in other countries (A).

Explanation: Opportunity cost is the benefits lost when making a choice or decision. So while spending so much money on one country it would be a loss to the other branches and countries. (I may be wrong though)

User Changhoon
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