A 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.

Question

A 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?
(1 point)
one-time expense of renovating restaurants
ongoing expense of high-quality ingredients
money that is expected to be provided by new adult customers
money that could have been made from families with young children

Answer 1

A 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.

The opportunity cost in the scenario above is the money that could have been made from families with young children.