Question

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 be able to increase the selling prices for most

of its products.

B. The business would have to spend all its money making new

Chinese products.

C. The business would be able to easily sell its products to many new

customers.

D. The business could not use the money it spends on the new

branch for something else.

Answer 1

D. The business could not use the money it spends on the new branch for something else.

Step-by-step explanation:

Opportunity cost or implicit is the cost of the option forgone when one alternative is chosen over other alternatives.

By deciding to open the branch, the funds that could be used for other activities would no longer be available.