The opportunity cost of tesla's investment in a new battery factory in nevada is

a. indeterminate since their plans are not detailed well enough.

b. measured in terms of the competition telsa will present to exisiting firms.

c. equal to the cost of inventory for the new battery factory.

d. what the company considered to be the best foregone option to the factory.

Question

Business

Danny

8 October, 20:20

The opportunity cost of tesla's investment in a new battery factory in nevada is

a. indeterminate since their plans are not detailed well enough.

b. measured in terms of the competition telsa will present to exisiting firms.

c. equal to the cost of inventory for the new battery factory.

d. what the company considered to be the best foregone option to the factory.

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Answers (1)

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Jane Larsen · Answer 1

I believe the answer is: D. what the company considered to be the best-foregone option to the factory.

The creation of new type of battery would cost Tesla a huge amount of capital that would definitely impact the amount of their profit for several operating years. The difference in profit between prior and after new battery would be the opportunity cost that must be taken by Tesla.