Which of the following would not be considered an opportunity cost?
A) the monthly salary that the owner could expect to earn if he worked for someone else.
B) the wages and salaries of employee who could be working in another division.
C) an expected return on the capital invested in the firm if it were available to be invested elsewhere.
D) estimated rental income that the firm's owners could have earned on manufacturing equipment by leasing it to another business.
E) estimated rental income that the firm's owners could have earned on the building by leasing it to another business.

Question

Quizplus · Accepted Answer

Opportunity cost refers to the benefits an individual, investor, or business misses out on when choosing one alternative over another. Choice B, the wages and salaries of employees who could be working in another division, does not represent an opportunity cost to the business owner or investor making a decision, as it reflects an internal allocation of resources rather than a foregone alternative. Choices A, C, D, and E all represent potential earnings or returns that are forgone by choosing to pursue a specific business activity, thus fitting the definition of opportunity costs.

Which of the Following Would Not Be Considered an Opportunity