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Assume That a Tool Hire Company Already Has a Stock

Question 3

Multiple Choice

Assume that a tool hire company already has a stock of tools. Which of the following are opportunity costs of hiring out the tools?
(i) Maintenance costs of the equipment
(ii) The cost of replacing the equipment
(iii) The depreciation of the equipment due to ageing
(iv) The depreciation of the equipment due to wear and tear
(v) Handling costs associated with hiring out the equipment


A) (ii) , (iii) and (v)
B) (i) , (ii) and (iii)
C) (iii) and (v)
D) (i) , (iv) and (v)
E) (i) , (ii) , (iii) and (v)

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