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:

Using Language

The ability to communicate and express thoughts, emotions, and ideas through structured verbal or written forms.

Verbal Following Skills

The ability to actively listen and respond appropriately to what others are saying, demonstrating understanding and engagement in a conversation.

Age

A measure of the time an individual has lived, typically given in years.

Setting

The physical or social context within which something occurs or is experienced.