Question

A business must decide whether to open a new office in China. If it opens the

Answer 1

Answer: The business could not use the money it spends on the new

branch for something else

Explanation:

Opportunity cost is what we forgo in order for us to have something else. In this case, if the company opens the branch in China, the the business will have to spend a lot of money to make the branch operational.

Therefore, the opportunity cost of this is that the money that will be used to make the branch operational could have been used for something else. Therefore, the correct option is C.