In a Make-Or-Buy Decision When There Are Alternative Uses for Capacity

question 171

True/False

In a make-or-buy decision when there are alternative uses for capacity, the opportunity cost of idle capacity is irrelevant.

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Definitions:

Labor-market Discrimination

Unfair treatment of workers based on personal characteristics unrelated to their job performance or skills, such as race, gender, or age.

Racial Minority

A group of people identified by their race who make up a smaller percentage of the total population than the majority group.

Labor Market

The supply of available workers in relation to available work.

Wages

The monetary compensation paid by employers to employees for their labor, typically calculated on an hourly, daily, or piecework basis.