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:

General Contractor

A principal contractor who is responsible for the execution, completion, and day-to-day oversight of a construction project.

Lien Rights

Legal claims or rights against a property that are created to secure payment of a debt or performance of an obligation.

Subcontractors

Companies or individuals hired by a general contractor to perform specific tasks as part of a larger project.

Materialmen

Suppliers or sellers of materials, especially in construction, that provide goods on credit to contractors or builders.