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Sagot :
The opportunity cost of switching to production option A is 40 pieces of sushi.
Opportunity costs are the possible advantages that a person, investor, or company forgoes while deciding between two options. Opportunity costs are by definition invisible, making it simple to ignore them. Making smarter decisions requires an understanding of the possible opportunities lost when a company or person selects one investment over another. The difference between the anticipated returns of each alternative is all that needs to be considered when estimating an opportunity cost. The determination of a company's capital structure involves opportunity cost analysis in a significant way. To make up for the investment risk, a company must pay costs when issuing both debt and stock capital.
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