Respuesta :
Answer:
The correct answer to the following question is that the answer to the first fill in the blank is production cost and the answer to second fill in the blank is opportunity cost .
Explanation:
Here for Cool clothes company , the production cost for producing one pair of jeans is $15 . This company now decided to discontinue their operation of producing shirts in order to focus on producing more jeans , so here discontinuing production of shirts is the opportunity cost for the company. Opportunity cost is the benefit that company could have gained by producing shirts.
For Cool Clothes Company, the $15 is the production cost and discontinuation of shirt production is considered their opportunity cost
What is production cost?
Production cost refers to the cost of materials to make a good or provide a service. It is the cost a company incurs from manufacturing a product or providing a service that generates revenue for the company.
Opportunity cost is an economic term for expressing cost, in terms of foregone alternative. It is the value of the next-best alternative when a decision is made; it's what is given up.
Hence, for Cool Clothes Company, the $15 is the production cost and discontinuation of shirt production is considered their opportunity cost.
Learn more about production and opportunity cost here : https://brainly.com/question/4783765