RESPOND WITH AT LEAT 150 WORDS, CITATION AND REFRENCE The opportunity cost is high and directly affects the business as you have to assess which decision has the biggest impact on the business. When y

RESPOND WITH AT LEAT 150 WORDS, CITATION AND REFRENCEThe opportunity cost is high and directly affects the business as you have to assess which decision has the biggest impact on the business. When you look at 2 options, you have to give up one to get the other, so you have to weigh which choice is the correct one to take. A piece of land that can be used for growing animals or vegetables is an example. You cannot have both in the same market, so you have to decide which opportunity would have the greatest effect on your business. It will cost the company money, time, and energy if you make the wrong decision, but the right decision will make the company successful or make better use of resources. When you think of it is the cost of giving up an alternative to some other economic activity that is equivalent. It is imperative because to get a lower benefit. The company would not want to lose a higher opportunity cost. For example, if a company gives up $100 as a cost of opportunity, they cannot make any other move that gives them less than 100 or is at a loss.

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