If a company has excess capacity,the most it should be willing to pay for a part for a product that it currently makes would be the ________.
A)total costs of producing the part
B)total variable costs of producing the part
C)total fixed costs that can be avoided by buying the part
D)total variable costs of producing the part plus total fixed costs that can be avoided by buying the part

Question

Quizplus · Accepted Answer

The Answer of If a company has excess capacity,the most it should be willing to pay for a part for a product that it currently makes would be the ________.
A)total costs of producing the part
B)total variable costs of producing the part
C)total fixed costs that can be avoided by buying the part
D)total variable costs of producing the part plus total fixed costs that can be avoided by buying the part

If a Company Has Excess Capacity,the Most It Should Be