The Opportunity Cost of Making a Component Part in a Factory

question 88

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 fixed manufacturing cost of the component.
• D) zero.

---

Definitions:

Legalese

A specialized language filled with legal terms and phrases, often found in legal documents and used by professionals in the legal field.

User-friendly

A design or system that is easy to use, understand, and interact with, enhancing the user's experience.

Written Document

A form of recorded information or ideas expressed in text on a physical or digital medium.

Legal Correspondence

Communication in written form between parties involved in a legal process, including letters, emails, and memos, often pertaining to the management and progress of legal cases.