When a Business Has Idle Capacity and Has Two Options

question 55

True/False

When a business has idle capacity and has two options to choose from that will maximise capacity, the potential benefit that is surrendered by choosing only one option is known as the opportunity cost.

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Definitions:

Shares Held

Refers to the quantity of stock units owned by an individual or entity at any given time.

Volatile Stock

Shares of a company that exhibit significant fluctuations in price over short periods of time due to various factors.

Risky Stock

Shares of a company with a high level of risk, often due to volatility, uncertainty, or both, potentially leading to high returns or losses.