The Opportunity Cost of Making a Component Part in a Factory

question 26

Multiple Choice

The opportunity cost of making a component part in a factory with no excess capacity is the: (CMA adapted)

• A) variable manufacturing cost of the component.
• B) fixed manufacturing cost of the component.
• C) total manufacturing cost of the component.
• D) net benefit foregone from the best alternative use of the capacity requireD.
• Opportunity costs and benefits are all about amounts foregone.

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Definitions:

Coenzyme

An organic cofactor for an enzyme; generally participates in the reaction by transferring some component, such as electrons or part of a substrate molecule.

Apoenzyme

The protein component of an enzyme, to which a coenzyme or cofactor must bind to form an active enzyme.

Nonpolypeptide

Referring to molecules that are not composed of peptide bonds and amino acid chains, contrary to proteins.

Coenzyme

An organic non-protein molecule that binds with an enzyme to catalyze a reaction.