What Is the Opportunity Cost of Making a Component Part

question 34

Multiple Choice

What is the opportunity cost of making a component part in a factory with no excess capacity?

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

---

Definitions:

Real-world Problems

Complex, unstructured issues encountered in daily life or professional contexts that require critical thinking and problem-solving skills for resolution.

Towers of Hanoi

A mathematical game or puzzle consisting of three rods and a number of disks of different sizes that need to be moved from one rod to another under certain rules.

Reasoning by Analogy

A cognitive process where understanding and problem-solving are achieved by highlighting the similarities between two different situations or domains.