Megastar software recently developed new spreadsheet software, Ad-soon, which it
ID: 2592478 • Letter: M
Question
Megastar software recently developed new spreadsheet software, Ad-soon, which it intends to market by mail through ads in computer magazines. Just prior introducing Ad-soon, Megastar received an unexpected offer from vision computer company to buy all rights to the software for £4 million cash. Question: Describe Megastar opportunity cost if it accepts Vision company's offer? (Please answer the question in paragraph by critical thinking ) Megastar software recently developed new spreadsheet software, Ad-soon, which it intends to market by mail through ads in computer magazines. Just prior introducing Ad-soon, Megastar received an unexpected offer from vision computer company to buy all rights to the software for £4 million cash. Question: Describe Megastar opportunity cost if it accepts Vision company's offer? (Please answer the question in paragraph by critical thinking ) Question: Describe Megastar opportunity cost if it accepts Vision company's offer? (Please answer the question in paragraph by critical thinking )Explanation / Answer
Opportunity cost here will be the profit foregone on Ad-soon sale by Megastar software on it's own. Megastar need to compare the Adsoon profitability projections with the offer made by Vision Computer. Opportunity cost here will be lower than Vision offer as Megastar has accepted the offer.