Solved

The Seller of a Product Has No Idle Capacity and Can

Question 103

Multiple Choice

The seller of a product has no idle capacity and can sell all it can produce at $11 per unit.Outlay cost is $3.Assuming the seller can sell internally,what is the opportunity cost?


A) $2
B) $4
C) $8
D) $11

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q22: Dual pricing reduces the goal-congruence problem associated

Q42: Opportunity costs represent the cash flows directly

Q99: The Home Appliances Company makes all types

Q100: Products transferred between subunits within an organisation

Q102: The Assembly Division of Hunter Valley

Q104: When an industry has excess capacity,market prices

Q105: Explain what transfer prices are,and identify the

Q106: Answer the following questions using the

Q107: The Airbags Division of Shepparton Motor

Q108: Which of the following transfer-pricing methods motivates