The Opportunity Cost of Making a Component Part in a Factory

question 123

Multiple Choice

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

• A) Variable manufacturing cost of the component.
• B) Fixed manufacturing cost of the component.
• C) Total manufacturing cost of the component.
• D) Cost of the production given up to manufacture the component.
• E) Net benefit foregone from the best alternative use of the capacity required.

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Definitions:

Social Connectedness

refers to the level at which individuals or groups interact with each other and form relationships, considered essential for psychological and physical well-being.

Secondary Reinforcer

A stimulus that gains reinforcement value through association with established reinforcers.

Money

A medium of exchange in the form of coins and banknotes; used as a way to value goods and services and facilitate trade.

Taste Aversions

The acquired aversion to specific food or beverage due to its connection with a distressing or sickening event.