The Opportunity Cost of Making a Component Part in a Factory

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.