In a decision to drop a segment, the opportunity cost of the space occupied by the segment is the cost of renting or building similar space nearby.

Question

Quizplus · Accepted Answer

Opportunity cost refers to the potential benefits an individual, investor, or business misses out on when choosing one alternative over another. It is not the cost of renting or building similar space, but rather the value of the next best alternative use of that space.

In a Decision to Drop a Segment, the Opportunity Cost