2.Matilda wants to start a business. She anticipates making $100,000 profit in
Question
2. Matilda wants to start a business. She anticipates making $100,000 profit in
year one on her initial investment of $20,000. Her next best option is buying a CD. Current CD rates are at 2%. What is her opportunity cost for buying the business?
a) $2,000
b) $20,000
c) $400
d) $4,000
Economics