Adidas decides to invest $100,000,000 into a shoe factory in Vietnam from its money market account. The money market account was earning 1% in interest per year or $1,000,000. Adidas could have also earned $400,000 from investing the $100,000,000 in a watch factory. What is its opportunity cost for Adidas based off of the information in presented this situation

The opportunity cost is $400000.

Explanation:

The investment amount in shoe factory = $100,000,000

The earning from money market account = $100,000,000 × 1% = $1,000,000

The second option to invest is watch factory and the investment amount is same = $100,000,000

The earning from watch factory = $400,000

The opportunity cost is the cost of the best-forgone alternative. Therefore, if Adidas decides to invest in a shoe factory then the earning of the watch factory is the opportunity cost. So the opportunity cost of Adidas is $400,000

-the personal ownership of property

-the influence of consumer demand

explanation:

the command economy prohibits the personal ownership of property.

basically, command economy is defined as the system where a nation’s government is the one that makes all the decisions when it comes to its economy. the government is the one who controls the production of goods and services and regulates the prices and salaries.

therefore, since that the government is the authority, then all kinds of personal ownership of property is prohibited by them.