Asked by
Kamaria Appleton
on Nov 12, 2024
Verified
The cost of a resource that has no alternative use in a make or buy decision problem has an opportunity cost of zero.
Opportunity Cost
The benefit, profit, or value of something that must be given up to acquire or achieve something else.
Make or Buy Decision
The process of deciding whether to produce a good or service in-house or to purchase it from an external supplier.
- Understand and separate sunk costs from opportunity costs in scenarios that involve making choices.
Verified Answer
VS
Learning Objectives
- Understand and separate sunk costs from opportunity costs in scenarios that involve making choices.