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Question 17 of 20

A factory increases wages for its workers but does not have enough money

left over to invest in new machinery. This is an example of which economic

concept?

O A. Incentive

B. Opportunity cost

c. Marginal benefit

O D. Marginal cost

Answer

B. Opportunity cost.

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Opportunity cost refers to the cost of the next best alternative foregone when making a decision. In this case, the factory chose to increase wages...