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Fast Company Has Just Decided to Outsource the Production of a Part

Question 132

Multiple Choice

Fast Company has just decided to outsource the production of a part for a product.Assume Fast Company leaves the area of the manufacturing plant idle where it was producing the outsourced part.It has no alternative uses of the plant.What is the opportunity cost of the idle area of the manufacturing plant to Fast Company?


A) zero
B) definitely a negative number
C) the disposal value of the entire manufacturing plant
D) none of the above

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