Suppose a company uses wood pulp (chemically processed wood) instead of recycled materials to make paper. What is the opportunity cost of the company’s choice?

Recycled materials

Explanation:

Opportunity cost is a term in Economics defined as the alternative or profit forgone as a result of choosing another alternative.

In the question above, the company uses wood pulp (chemically processed wood) which is the real cost and alternative chosen. It was chosen instead of the recycled materials which serves as the opportunity cost as it was the alternative which was forgone for the choice of the wood pulp by the company.

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