A fast-food chain makes the decision to reband itself as a mid range adult cafe instead of a cheap kid friendly restraunt. This change will involve using higher ingrediants and revonating to remove childrens playgrounds

use the passage to answer the scenario

3: What is the opportunity cost in the scenario above?

A:one-time expense renovating restaurants
B:ongoing expense of high-quality ingredients
C:money that is expected to be provided by new adult customers
D:money that could have been made from families with young children

1 answer

The opportunity cost in the scenario above is D: money that could have been made from families with young children. This is because by rebranding itself as a mid-range adult cafe and removing children's playgrounds, the fast-food chain is essentially giving up the potential profits it would have made from serving families with young children.