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:

Estray Statutes

Laws that govern how stray livestock can be claimed, managed, or sold by individuals who find them.

Statutes of Limitations

Laws setting the maximum time after an event within which legal proceedings may be initiated, commonly affecting the enforceability of civil claims and criminal charges.

Clear Title

The status of a property or asset that is free of liens, disputes, or legal questions about ownership.

Conversion

An illicit action that takes away personal property from the owner without permission.