The seller of a product has no idle capacity and can sell all it can produce at $33 per unit. Outlay cost is $9. What is the opportunity cost, assuming the seller sells internally?
A)$6
B)$12
C)$24
D)$33

Question

Quizplus · Accepted Answer

The opportunity cost is the profit foregone by not selling externally. The selling price is $33, and the outlay cost is $9, so the opportunity cost is $33 - $9 = $24.

The Seller of a Product Has No Idle Capacity and Can