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:

Anxiety

A feeling of worry, nervousness, or unease, typically about an imminent event or something with an uncertain outcome.

Retention

Refers to the ability to keep or maintain something, such as knowledge, information, or employees within a company.

Digital Reading

The act of reading text displayed on digital devices, such as e-readers, tablets, or computers, as opposed to printed material.

Weak Eyesight

A common condition that impairs a person's ability to see clearly, requiring corrective measures like glasses or contact lenses.