In a special order situation that involves using capacity that is not idle, opportunity costs are zero.

Name: In a special order situation that involves using capacity that is not idle, opportunity costs are zero.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

In a special order situation where capacity that is not idle is being used, there is an opportunity cost. The opportunity cost is the revenue that could have been earned by using that capacity for regular sales. Therefore, the opportunity cost is not zero.

In a Special Order Situation That Involves Using Capacity That