Question
A manufacturer decides to create plastic toy animals instead of plastic toy robots. Robots become more popular amongst children, so the manufacturer cannot sell the animals at the price they want. What describes the money they lost in this situation?
(1 point)
Responses
opportunity cost
opportunity cost
variable cost
variable cost
fixed cost
fixed cost
indirect cost
(1 point)
Responses
opportunity cost
opportunity cost
variable cost
variable cost
fixed cost
fixed cost
indirect cost
Answers
GPT-4o mini
The correct response is **opportunity cost**.
Opportunity cost refers to the lost potential gain from other alternatives when one alternative is chosen. In this case, the manufacturer's decision to produce plastic toy animals instead of plastic toy robots resulted in the lost opportunity of the potential profit they could have earned if they had produced the more popular robots instead.
Opportunity cost refers to the lost potential gain from other alternatives when one alternative is chosen. In this case, the manufacturer's decision to produce plastic toy animals instead of plastic toy robots resulted in the lost opportunity of the potential profit they could have earned if they had produced the more popular robots instead.