The Opportunity Cost to a Firm of Using an Asset

question 75

Multiple Choice

The opportunity cost to a firm of using an asset is zero if

• A)the asset is already owned by the firm.
• B)no money was spent to acquire the asset.
• C)the asset has no alternative uses.
• D)the asset has zero sunk costs associated with it.
• E)the asset was given to the firm for free.

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Definitions:

Control Group

In experimental research, a group of subjects that does not receive the experimental treatment and is used as a benchmark to measure how the other tested subjects do.

Placebo

An inert or innocuous substance given to a patient instead of genuine medication, used in studies to evaluate the efficacy of treatments.

Confederate

An individual who is part of an experiment but pretends to be a participant and is aware of the study's aims.

Experimental

Pertaining to a methodological approach that involves manipulating one variable to determine if changes in one variable cause changes in another variable.