it costs cool clothes company $15 to produce one pair of jeans, but they needed to discontinue production of…
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 _________. opportunity cost; production cost production cost; resource cost production cost; opportunity cost resource cost; production cost
Answer
Brief Explanations:
The cost to produce one - pair of jeans ($15) is the direct cost of making the product, which is the production cost. The discontinuation of shirt production to focus on jeans means giving up the opportunity to produce shirts, so it is an opportunity cost.
Answer:
production cost; opportunity cost