Social Studies
Social Studies, 25.09.2021 02:50, loroloco71

PLEASE HELP! A business can choose many different courses of action, but choosing one direction precludes another. For instance, buying a McDonald’s franchise costs about $1,000,000. That considerable investment has an opportunity cost. The money could have been used to do something else, perhaps open up another fast food restaurant, start an entirely different business, invest it in the stock market, or even place it in the bank, where it would earn interest each month. A good economist is concerned about how the $1,000,000 could have been spent and what it would have earned if it had not been spent to buy the McDonald’s franchise.

What would your opportunity costs be if you opened a franchise?
Answer the prompt using at least four sentences.

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Answers: 3

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