Costs Benefits

1. Hire more workers 1. Set own hours of operation

2. Take on more operations costs 2. Have more space and control over appearance

3. Divide time between market and shop-or close stall at market 3. Serve more customers

4. Accept more financial risk 4. Make and sell more food items

Ezra runs a gyro stall at the local farmers' market. He would like to expand and open his own shop downtown. He has made the chart above, listing some potential costs and benefits of expansion. What concept does this chart most clearly illustrate?

Question

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Business

1 October, 09:01

Costs Benefits

1. Hire more workers 1. Set own hours of operation

2. Take on more operations costs 2. Have more space and control over appearance

3. Divide time between market and shop-or close stall at market 3. Serve more customers

4. Accept more financial risk 4. Make and sell more food items

Ezra runs a gyro stall at the local farmers' market. He would like to expand and open his own shop downtown. He has made the chart above, listing some potential costs and benefits of expansion. What concept does this chart most clearly illustrate?

+5

Answers (2)

Know the Answer?

Aidyn Vargas · Answer 1

Opportunity cost

A trade-off

Explanation:

Opportunity cost measures the cost of a choice made in terms of the next best alternative foregone or sacrificed.

Trade-off arises where having more of one thing potentially results in having less of another.

Cecelia Roy · Answer 2

3rd option is correct

Explanation:

At first Ezra needs to divide his time between market and shop. Because when you are expanding the business it's a great risk. She needs to experiment with the shop downtown while running stall. After her experiment is successful with the shop, he can close the stall and work full time at shop. In this way he will be able to serve more customer and earn more profit which will be utilized in expansion.