Your Firm Owns an Old Truck That Is Used to Make

question 15

Multiple Choice

Your firm owns an old truck that is used to make local deliveries. The truck is fully depreciated and only costs $1.20 per hour to operate, but you could rent it to another firm for $15.00 per hour. What is the opportunity cost of operating this truck in your business?

• A) $1.20 per hour
• B) $15.00 per hour
• C) $16.20 per hour
• D) Less than $1.20 per hour

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Definitions:

Free-Living

Describes organisms that do not depend on another organism for survival; they are not parasitic and can exist independently in an environment.

Aquatic

Pertaining to water; living or occurring in water, whether it be freshwater, brackish, or saltwater.

Parasitic

Pertaining to an organism that lives on or in a host organism and causes harm to the host.

Terrestrial

Pertaining to or representing the earth or dry land, as opposed to aquatic environments.