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mixer [17]
3 years ago
11

If Japan uses a certain amount of resources to produced cars, then it cannot use these sames resources to produce corn. The fore

gone corn production as a result of this resource allocation is ____________
Business
1 answer:
harina [27]3 years ago
4 0

Answer:

The opportunity cost of producing cars

Explanation:

In business , every action and decision comes with opportunity cost as resources for production will always have alternative usage. Therefore , opportunity cost of a decision is defined as the alternative forgone in arriving at a chosen decision. That is , the related  benefits of an option sacrificed to produce another item.

Looking at the given scenario , Japan was confronted with using the   available resources to produce either cars or corns , but finally decided to produce cars at the expense of corn, With this decision , every benefit related to the production of corn has to be forgone for the production of cars, therefore, the  opportunity cost of the decision to produce cars is the forgone production of corn.

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