Marico Corp.can manufacture 45,000 ball bearings per day at one of its production facilities.If the company uses the same facility for manufacturing rivets,a total of 30,000 rivets can be produced each day.Calculate Marico Corp.'s implicit cost per day of producing rivets at this facility.

Question

Quizplus · Accepted Answer

The implicit cost of producing rivets is the opportunity cost of not producing ball bearings, which is the monetary value of the 45,000 ball bearings that could have been produced instead.