Evaluating Alternatives Using Opportunity Cost
Jenifer owns a company that grows and distributes organic food across four continents. She is deciding whether to enter a joint venture with another firm or to invest funds in improving employee satisfaction. What is a key assumption required for her to use opportunity cost to evaluate these alternatives?
A
The cost of one alternative must be significantly greater than the cost of the other.
B
The analysis must be based on realistic assumptions and projections.
C
She must conduct a thorough statistical analysis of the data.
D
The costs of both alternatives must be equal.
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