The opportunity cost to a firm of using an asset is zero if
A)the asset has zero sunk costs associated with it.
B)the asset is already owned by the firm.
C)the asset has no alternative uses.
D)the asset was given to the firm for free.
E)no money was spent to acquire the asset.

Question

Quizplus · Accepted Answer

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

The Opportunity Cost to a Firm of Using an Asset