When evaluating a decision to invest in new equipment, a company considers the opportunity cost of not investing in employee training. If the cost of the new equipment is $10,000 and the projected benefits from training employees could lead to a $15,000 increase in productivity, what should the company prioritize according to the principles of opportunity cost and cost-benefit analysis?

When a company is deciding whether to invest in new equipment or employee training, it needs to think about opportunity costs, which are the benefits it misses out on by choosing one option over another. In this case, the new equipment costs $10,000, but if the company invests in employee training instead, it could gain $15,000 in increased productivity. This means that the potential benefits from training are greater than the cost of the equipment. Therefore, according to the principles of opportunity cost and cost-benefit analysis, the company should prioritize employee training because the higher return on investment makes it the smarter choice. By choosing training, the company not only avoids wasting money but also enhances overall productivity.