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Tex's Manufacturing Company can make 100 units of a necessary component part with the following costs: If Tex's Manufacturing Company purchases the component externally, $15,000 of the fixed costs can be avoided. At what external price for the 100 units is the company indifferent between making or buying?
Fallacy
A flaw in the process of thought that results in an argument being invalid or not solidly reasoned.
Affirming Consequent
A logical fallacy where one assumes that because the consequent is true, the antecedent must also be true; it's a flawed argument in conditional reasoning.
Antecedent
The conditional clause that represents the if-part in a conditional statement, where its truth logically necessitates the truth of the consequent.
Modus Ponens
A logical form of argument where, from two premises, one asserts a condition and the other affirms that condition, leading to a conclusion.
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