Ask Question
3 October, 01:01

Refer to Scenario 13-13. Christine used $5,000 from her personal savings account to buy pottery tools for her business. The savings account paid 1% annual interest. What is Christine's annual opportunity cost of the financial capital that she invested in her business

+1
Answers (1)
  1. 3 October, 01:16
    0
    Christine's annual opportunity cost of the financial capital that she invested in her business is $50

    Explanation:

    Opportunity costs are all those losses which are faced for choosing an alternative like loss of interest income in case of investment in the business.

    In this question, the opportunity cost for Christine is the loss of interest income from the investment in the saving account in case of investment in the business.

    Investment = $5,000

    Interest Income = 1% of Investment = $5,000 x 1% = $50

    Opportunity cost is $50.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Refer to Scenario 13-13. Christine used $5,000 from her personal savings account to buy pottery tools for her business. The savings account ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers