The Seller of a Product Has No Idle Capacity and Can

question 73

Multiple Choice

The seller of a product has no idle capacity and can sell all it can produce at $33 per unit. Outlay cost is $9. What is the opportunity cost, assuming the seller sells internally?

• A)$6
• B)$12
• C)$24
• D)$33

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Definitions:

Software Development

The process of conceiving, specifying, designing, programming, documenting, testing, and fixing bugs involved in creating and maintaining applications, frameworks, or other software components.

Comparative Advantage

The ability of an entity to produce goods or services at a lower opportunity cost than others, leading to more efficient trading possibilities.

India

A country in South Asia, known for its diverse culture, historical heritage, and as the world's largest democracy.

Foreign Licensing

Involves a company granting a foreign entity the rights to produce and market its product or use its technology in a foreign country.