The cost of resources supplied but unused is known as:
A)practical capacity costs.
B)the cost of theoretical capacity.
C)the cost of unused capacity.
D)the cost of resources supplieD.
E)capacity cost.

Question

Quizplus · Accepted Answer

The cost of resources supplied but unused is specifically referring to the cost of unused capacity. This is not the same as practical or theoretical capacity costs, which refer to the maximum amount of output a firm can produce given its resources or the ideal maximum amount of output given perfect conditions, respectively. Additionally, simply referring to the cost of resources supplied could be ambiguous, as it could include costs related to both used and unused resources. Therefore, C is the most accurate and specific choice.

The Cost of Resources Supplied but Unused Is Known As