You're considering three mutually exclusive options for the additional space she just added to the specialty retail store she owns. the cost of the expansion was $229,000. you can either expand the women's clothing area, add a new footwear section, or expand into home linens. you estimated that the value of these options at $68,000 for clothing, $57,000 for footwear, or $62,000 for home linens. what is the opportunity cost of your most profitable option?

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Business

Rhodes

13 January, 05:00

You're considering three mutually exclusive options for the additional space she just added to the specialty retail store she owns. the cost of the expansion was $229,000. you can either expand the women's clothing area, add a new footwear section, or expand into home linens. you estimated that the value of these options at $68,000 for clothing, $57,000 for footwear, or $62,000 for home linens. what is the opportunity cost of your most profitable option?

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Arthur Marks · Answer 1

We know that opportunity cost is an advantage, revenue, or worth of something that must be given up to obtain something else. So the best answer for this question would be home linens that has an amount of $62,000 since you need to give this up so that you can buy the clothing and the footwear option.