Editing Opportunity cost (section)

=== Adjustment cost ===
The phrase "adjustment costs" gained significance in macroeconomic studies, referring to the expenses a company bears when altering its production levels in response to fluctuations in demand and/or input costs. These costs may encompass those related to acquiring, setting up, and mastering new capital equipment, as well as costs tied hiring, dismissing, and training employees to modify production. We use "adjustment costs" to describe shifts in the firm's product nature rather than merely changes in output volume. We expand the notion of adjustment costs in this manner because, to reposition itself in the market relative to rivals, a company usually needs to alter crucial features of its goods or services to enhance competition based on differentiation or cost. In line with the conventional concept, the adjustment costs experienced during repositioning may involve expenses linked to the reassignment of capital and/or labor resources. However, they might also include costs from other areas, such as changes in organizational abilities, assets, and expertise.<ref>{{Cite journal |last1=Argyres |first1=Nicholas |last2=Mahoney |first2=Joseph T. |last3=Nickerson |first3=Jackson |date=2019-01-25 |title=Strategic responses to shocks: Comparative adjustment costs, transaction costs, and opportunity costs |url=http://dx.doi.org/10.1002/smj.2984 |journal=Strategic Management Journal |volume=40 |issue=3 |pages=357–376 |doi=10.1002/smj.2984 |s2cid=169892128 |issn=0143-2095}}</ref>{{verify inline|reason=Citation was previously on the heading. Unclear what claims it was supposed to support|date=November 2023}}