The seller of Product A has no idle capacity and can sell all it can produce at $20 per unit. Outlay cost is $4

ACCOUNTING

Multiple Choice

The seller of Product A has no idle capacity and can sell all it can produce at $20 per unit. Outlay cost is $4. What is the opportunity cost, assuming the seller sells internally?

a. $4

b. $16

c. $20

d. $24

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