Your aunt is thinking about opening a hardware store. She estimates that it would cost $600,000 per year to rent the location and buy the stock. In addition, she would have to quit her $55,000 per year job as an accountant.1. What is the opportunity cost of something?
A. The time it takes to do something
B. What must be given up to acquire it
C. Cost to produce it
D. What you pay
2. Your aunt’s opportunity cost of running a hardware store for a year is
Suppose your aunt thought she could sell $510,000 worth of merchandise in a year.
3. True or False: Your aunt should open the store.