Question - A clothing manufacturer is considering dropping their product line of coats. What costs of the product line would be relevant to this decision? What costs would be irrelevant to the decision? What other factors do you think they should consider before making this final decision?
How does opportunity cost enter into the make or buy decision? What would be an example of a decision that you might make in your personal life that would involve an opportunity cost? What decision would you make and how would you change the opportunity cost if you needed to?