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:

Continuous Reinforcement

A strategy in which a desired behavior is reinforced every time it occurs, leading to quick learning of the behavior.

Behavior Modification

A psychological strategy for altering undesirable behaviors through reinforcement, punishment, and other interventions.

Occasional Praise

The act of expressing approval or admiration infrequently or at irregular intervals, often used as a motivational tool in personal and professional contexts.

Mentor Relationships

The dynamic between a more experienced individual (mentor) and a less experienced individual (mentee), geared towards the latter's personal and professional development.