Suppose the best investment you could make with $100,000 in cash is to purchase a government bond that pays 5 percent interest per year. If you decide to invest the money in your own business instead of buying the government bond, the opportunity cost of this financial capital is

A. $50,000 per year.
B. $500 per year.
C. $5,000 per year.
D. zero, because you already had the $100,000.


Answer: C

Economics

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