If a factory decides to produce 10 phones instead of 20 burgers, what is the opportunity cost of the decision?

Opportunity cost is what you give up when you make a choice. In this case, if the factory decides to produce 10 phones instead of 20 burgers, the opportunity cost is the 20 burgers they could have made. This means that by choosing to make phones, they are missing out on the chance to sell those burgers and earn money from them. For example, if each burger sells for $5, then the factory is giving up $100 worth of burgers by choosing to make phones. Understanding opportunity cost helps businesses make better decisions about how to use their resources.