The Cost of a Resource That Has No Alternative Use

question 95

True/False

The cost of a resource that has no alternative use in a make or buy decision problem has an opportunity cost of zero.

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Definitions:

UCC

The United States has implemented the Uniform Commercial Code, a wide set of legal principles, to govern commercial exchanges.

Consideration

In contract law, something of value given by both parties to a contract that induces them to enter into the agreement to exchange mutual performances.

Valid Consideration

A component of contract law that ensures all parties involved agree to give or do something of value in exchange for a benefit.

Bilateral Contract

A promise exchanged for a promise.