8
QuizMultiple Choice

Comparative and Absolute Advantage

Question 8 • 2102320-Economics HONORS - Edgenuity Teacher

Which scenario is the best example of an opportunity cost?

Answer
A
A computer company issues a recall on its tablets.
B
A computer company produces fewer laptops to meet tablet demand.
C
A computer company reduces the price on last year’s models.
D
A computer company stops making computers with CD/DVD drives.

Explanation

Opportunity cost is the value of the next-best alternative given up when a choice is made. Producing more tablets means the company uses resources that could have made laptops, so fewer laptops are produced. That forgone laptop production is the opportunity cost, making “produces fewer laptops to meet tablet demand” the best example.

AI-written and checked against the verified answer.

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