Question

It costs Cool Clothes Company $15 to produce one pair of jeans, but they needed to discontinue production of shirts to focus on jeans. For this company, the $15 is the ____, and discontinuation of shirt production is considered their ____? A) Opportunity Cost; Production Cost B) Production Cost; Resource Cost C) Production Cost; Opportunity Cost. D) Resource Cost; Production Cost

Answer 1

Answer:

C) Production Cost; Opportunity Cost. 

Explanation:

Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.

The discontinuation of shirt production in order to produce jeans is the opportunity cost.

Production cost is the total cost incurred in producing jeans.

I hope my answer helps you

Answer 2

The $15 cost to produce a pair of jeans to Cool Clothes Company is the Production cost while the discontinuation is the Opportunity cost. The correct option is C) Production Cost; Opportunity Cost.

What are some costs that businesses face?

Businesses have to incur production costs which are the expenses associated with producing a good. The $15 in this case is that expense for producing a pair of jeans.

When businesses have to give up something to produce another, the thing they gave up is an opportunity cost. The discontinuation of shirts is therefore an opportunity cost.

Find out more on opportunity costs at https://brainly.com/question/13036997.

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