Hutch Technology makes computer monitors, which sell for $100 each.What is the opportunity cost of 10 monitors?
A)$1,000
B)The other goods that could be produced with the resources that produce the 10 monitors
C)The profits that Hutch earns when 10 monitors are sold
D)The lost profits that Hutch if the monitors are not produced
E)All of the responses are correct.

Question

Quizplus · Accepted Answer

The opportunity cost of 10 monitors is the value of the other goods that could have been produced with the resources used to produce the monitors. In other words, if Hutch Technology had used the resources to produce something else, what would be the value of that output? This is the opportunity cost of producing the 10 monitors.

Hutch Technology Makes Computer Monitors, Which Sell for $100 Each