Maxi-mum corporation is looking at two major projects either of which, if successful. could put maxi-mum at the top of management consulting industry section. The project is $14,000,000 contract to help a fortune 100 company its corporate culture. This project would involve moving the operations function to another city and would take years of intensive training and consultation. The second project is valued at $15,000,000 and will involve helping management to reshape the corporate image of a former industry leader that has under gone a decline market share and customer satisfaction. This project will also involve 3 years of intensive consultation efforts. Maxi-mum cannot do both projects because either project will require that Maxi-mum invest 80% or more of its resources into completing successfully. The CFO have heard of opportunity cost but he's not sure what it really means,
What is opportunity cost?
Explain what it’s meant by trade-offs.
What is production possibility curve; can it be used in a business you researched on the internet? Explain