Read the scenario.
Jim owns a convenience store. He decides to invest in a hot food buff...
Read the scenario.
Jim owns a convenience store. He decides to invest in a hot food buffet. Between building the buffet, hiring a part-time cook, and advertising the food, he spends more than $30,000 over one year.
What is the opportunity cost of this decision?
A. the wages paid to keep a new cook interested in the job for a whole year
B. the time spent researching the local demand for hot food before paying for the new buffet
C. the one-time expenses needed to run the buffet, such as new cooking and safety equipment
D. the profits lost by not investing the money and time in another service, such as a new gas pump
Answers: 1
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