Opportunity costs are not relevant when a company has idle capacity.If a company has idle capacity,it does not have to give up the opportunity to do something else.

Question

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When a company has idle capacity, it means that it has resources that are not being used. In this case, the company does not have to give up the opportunity to do something else, as it can simply use the idle capacity to produce more goods or services.

Opportunity Costs Are Not Relevant When a Company Has Idle