It costs Cool Clothes Company $15 to produce one pair of jeans, but they needed to discontinue production of shirts to focus on jeans. For this company, the $15 is the _______, and discontinuation of shirt production is considered their __________.

Question

Revolt · Accepted Answer

production cost; opportunity cost

Prescriptive Test — Cumulative exam

It costs Cool Clothes Company $15 to produce one pair of jeans, but they needed to discontinue production of shirts to focus on jeans. For this company, the $15 is the _, and discontinuation of shirt production is considered their ____.