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