If a business owner decides to invest $10,000 in a new machine instead of using that money to expand their marketing efforts, what is the opportunity cost of this decision?

Opportunity cost is the value of what you give up when you make a choice. In this case, the business owner is investing $10,000 in a new machine instead of spending that money on marketing. The opportunity cost would be the potential benefits the business could have gained from the marketing efforts, such as increased sales or new customers. For example, if the marketing could have brought in $15,000 in sales, then the opportunity cost of choosing the machine is $15,000. So, understanding opportunity cost helps the owner see the trade-offs in their decisions.