It costs Cool Clothes Company $15 to produce one pair of jeans, but they needed to discontinue production of shirts to focus on jeans. The $15 and discontinuation of shirt production are represented by which of the following sets of terms?

opportunity cost; production cost

production cost; resource cost

production cost; opportunity cost

resource cost; production cost

I think the correct answer from the choices listed above is the third option. The set of terms that would best represent it would be production cost and opportunity cost. The $15 would be the production cost since it is the amount to produce one pair of jeans. The latter would be opportunity cost since it referred to a benefit that a person could have received, but gave up, to take another course of action.

Production cost; opportunity cost