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 lose the chance to make more money in China.

B. The business would have to open a new branch in a different country.

C. The business would increase its marginal benefits on each product it makes.

D. The business would be able to use the money it saves on other projects.

Global Economics ^

An opportunity cost for the business if it chooses not to open the new branch in China will be: A. The business would lose the chance to make more money in China.

What is the opportunity cost?

The opportunity cost is the forgone alternative. It is that which a person or business must forgo in making a decision.

Since the business will make a lot of money in China, if it decides not to open a branch in China because of the high cost of operations, then it will forgo the option of making more money in China.

Learn more about the opportunity cost here:

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