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20 January, 13:22

An owner of a landscaping business received extra income in the previous month. She is considering either buying a new lawnmower or spending the money on an advertising campaign in order to increase business in the next few months. If the business owner chooses to spend the money on an advertising campaign, what will be the opportunity cost?

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  1. 20 January, 13:30
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    The opportunity cost will be Buying a new lawnmower

    Explanation:

    Opportunity cost refers to the cost of a forgone alternative. In this scenario, since the owner of a landscaping business has decided to spend the extra income on advertising campaign in order to increase sales, the forgone alternative here becomes buying a new lawnmower.
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