The Opportunity Cost of a Resource

question 148

Multiple Choice

The opportunity cost of a resource

• A)includes both explicit and implicit cost
• B)includes explicit cost only
• C)includes implicit cost only
• D)is equal to the market price of the resource
• E)is not related to the market price of the resource

Comprehend the role and advantages of various distribution strategies such as drop-shipping and in-transit merge.

Grasp the concept of customer service dimensions in supply chain management.

Understand the implications of network facility number and location on total transportation and inventory costs.

Comprehend the value distributors add in the supply chain, especially in contexts of product dispersion to small customers.

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Definitions:

Operation of Law

Changes in legal status or rights triggered automatically by law, not requiring action by individuals.

Courts

Institutions that interpret and apply the law to resolve disputes.

Legal Obligations

Duties that are enforceable by law, arising from statutes, contracts, or legal principles.

Valid Contracts

Agreements that meet all legal requirements, including offer, acceptance, consideration, and legality, making them enforceable in court.