Alchem Factories Are Offered Competitive Pricing by Two Competing Processors

Multiple Choice

Alchem factories are offered competitive pricing by two competing processors of raw goods. Managers at the factory opt for the first company based on price, despite the second company offering free shipping. The value given up in shipping costs is an example of a(n) :

A) Opportunity incentive
B) Substitute cost
C) Substitute incentive
D) Opportunity cost