The Opportunity Cost of Making a Component Part in a Factory

question 13

Multiple Choice

The opportunity cost of making a component part in a factory with excess capacity for which there is no alternative use is:

• A) The variable manufacturing cost of the component.
• B) The total manufacturing cost of the component.
• C) The total variable cost of the component.
• D) The fixed manufacturing cost of the component.
• E) Zero.

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Definitions:

Germ Layer

One of three layers in the embryo (ectoderm, endoderm, or mesoderm) from which the four primary tissue types arise.

Implantation

The process by which a fertilized egg attaches itself to the lining of the uterus where it can then develop into a fetus.

Fundus

Bottom, or rounded end, of a hollow organ—for example, the fundus of the stomach or uterus.

Uterine Tube

One of the tubes leading on each side from the uterus to the ovary; consists of the infundibulum, ampulla, isthmus, and uterine parts; also called fallopian tube or oviduct.