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.

Question

Quizplus · Accepted Answer

The opportunity cost is zero if the asset has no alternative uses, as there is no foregone benefit from using it in its current capacity.

The Opportunity Cost to a Firm of Using an Asset