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8 October, 04:40

Bubba is a shrimp fisherman who used $2,000 from his personal savings account to buy a boat and equipment for his shrimp business. The savings account paid 2% interest. What is Bubba's annual opportunity cost of the financial capital that he invested in his business? a. $200

b. $40

c. $20

d. $400

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Answers (1)
  1. 8 October, 06:00
    0
    The answer is B, as he would have received 2% of $2000 which is $40 had he decided not to buy the boat and equipment.
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