Test Your Knowledge – Opportunity Costs
Opportunity costs are an economic concept to quantify benefits of alternatives that were ignored while making a decision. Precisely, opportunity costs are the value of the best alternative that was not chosen.
For example: In a case interview, as a part of a business solution for a food supermarket, you recommend to use a share of the space for pre-prepared food items instead of a small restaurant (best alternative). Here, opportunity costs would be the revenues that would have been made by utilizing the space for the small restaurant instead of pre-prepared food items.
Are you able to incorporate opportunity costs into you case solving process?
Read each question carefully and choose the response that you think is correct. After finishing the test, you will receive an interpretation of your score.