Please help me this question In 2016, David Hay started his own business, Hays Gardening and Landscapes. David was previously an employer of another business/
a) What was the opportunity costs for David when he started his business?

A. Cost of marketing to attract customers.

B. Loss of earnings from employment

C. Payment of taxes on profits

D. Risk of business failure

ANSWER:

b) Explain why this answer is correct?

B. Loss of earnings from employment

Explanation:

Opportunity cost refers to the loss of other alternatives when another alternative is being chosen. It is the potential benefit that an individual, firm or government misses out on when a different alternative is being selected.

Based on the question given, the opportunity costs for David when he started his business will be the earnings that he got from his previous employment such as the wages or the salaries, bonuses etc. Since he has began his own business, he can't enjoy those benefits anymore.

the clients (funders) and customers (individual nonprofit staff) are great to work with. that i can be open about being a person of faith when appropriate. the variety of my tasks each day.

i'ts proportional. if the inflation rate is 12% for example, the cpi will be 12% less.

hope it ,

bioteacher101