If fast food chain makes the decision to rebrand itself as a mid range adult café instead of a cheap kid, friendly restaurant this change will involve using higher quality ingredients and renovating to remove children’s playgrounds. Use the passage to answer the question. What is the opportunity cost in the scenario above.

Question

If fast food chain makes the decision to rebrand itself as a mid range adult café instead of a cheap kid, friendly restaurant this change will involve using higher quality ingredients and renovating to remove children’s playgrounds. Use the passage to answer the question. What is the opportunity cost in the scenario above.

One time expense for renovating restaurants
Ongoing expense of high-quality ingredients
Money that is expected to be to be provided by new adult customers
Money that could have been made from family with the young children

Answer 1

The opportunity cost in the scenario above would be the money that could have been made from families with young children. By rebranding as a mid-range adult café and removing children's playgrounds, the fast food chain may lose the business of families who are looking for a kid-friendly dining option. This could result in a loss of potential revenue from this segment of customers.