The Opportunity Cost of Making a Component Part in a Factory

question 83

Multiple Choice

The opportunity cost of making a component part in a factory with no excess capacity is the:

• A)net benefit foregone from the best alternative use of the capacity required.
• B)fixed manufacturing cost of the component.
• C)variable manufacturing cost of the component.
• D)cost of the production given up in order to manufacture the component.

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Definitions:

Wild Salmon

Salmon that live and reproduce in their natural environments in oceans and rivers, not raised in captivity for commercial purposes.

Transgenic Salmon

Genetically modified salmon that have been altered to grow faster than wild-type salmon, often involving the insertion of growth hormone genes from other fishes.

Salmon Farms

Aquaculture operations specifically aimed at breeding and raising salmon in controlled environments for commercial purposes.

Pollution

The introduction of harmful substances or products into the environment, resulting in negative effects on living organisms and the natural ecosystem.