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:

Inspire

To fill someone with the urge or ability to do or feel something, especially to do something creative or beneficial.

Psychological Types

Categories or patterns of personality that are distinguished by particular traits or modes of behavior, often based on theories such as those by Carl Jung.

Interactions

The reciprocal actions and influences individuals have on each other in social settings.

Functions

Refer to specific, pre-defined operations or activities in various fields such as mathematics, where they map inputs to outputs, or in programming, where they are blocks of code designed to perform a particular task.