Which situation best describes an opportunity cost? A. An employee who earns a collegtydegree is given a pay raise.

B. A store that buys a shipment of computers can't afford to buy any

new phones.

C. A business hires new employees to keep up with growing

consumer demand.

D. A corporation that begins selling a new product sees its overall

profits increase.

B. A store that buys a shipment of computers can't afford to buy any new phones.

Explanation:

Opportunity cost is the cost of the forgone alternative when a choice is made.

In this case, the store made a choice between buying a ship of computers, or buying new phones. It cannot do both because the firm has limited resources.

The store chose to buy the computers instead of the phones. The economic benefits that it could have obtained from buying the phones represent the opportunity cost for this firm.

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