Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
By focusing solely on immediate profits without considering future impacts
B
By investing in resources that yield the highest immediate returns regardless of sustainability
C
By evaluating potential long-term benefits against short-term costs to make informed decisions
D
By completely disregarding opportunity costs in favor of maximizing current cash flow
Understanding the Answer
Let's break down why this is correct
Answer
Opportunity cost analysis helps businesses understand what they give up when they choose one option over another. To balance short-term gains and long-term efficiency, a business should evaluate the benefits and drawbacks of each choice. For example, if a company decides to invest in a quick marketing campaign that boosts sales immediately, it must consider whether this takes away resources from developing a better product that could lead to greater profits in the future. By analyzing these trade-offs, a business can make informed decisions that not only provide immediate rewards but also contribute to sustainable growth. Ultimately, the goal is to find a balance that maximizes overall success while minimizing potential losses from missed opportunities.
Detailed Explanation
This answer is right because it shows that a business should think about both short-term costs and long-term benefits. Other options are incorrect because This option suggests only looking at quick profits; This choice focuses on immediate returns without thinking about the future.
Key Concepts
trade-offs
economic efficiency
long-term vs. short-term planning
Topic
Opportunity Cost Analysis
Difficulty
hard level question
Cognitive Level
understand
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