The seller of Product A has no idle capacity and can sell all it can produce at $60 per unit. Outlay cost is $12. What is the opportunity cost, assuming the seller sells internally?
A)$12
B)$48
C)$60
D)$72

Question

Quizplus · Accepted Answer

The opportunity cost is the profit foregone by not selling the product externally. Since the selling price is $60 and the outlay cost is $12, the opportunity cost is $60 - $12 = $48.

The Seller of Product a Has No Idle Capacity and Can