The opportunity cost of the Investor choosing Investment A is the payoff of $21,000 from B.
What is Opportunity Cost?
- It represents the implicit cost we incur for making one decision instead of another.
- It is quantified as the payoff that would have been made if the other decision was chosen.
The opportunity cost of choosing investment A in this scenario will therefore be the amount that would have been earned from investment B which is $21,000.
Find out more on opportunity cost at https://brainly.com/question/481029.
