Answered

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Assume your firm has an unused machine that originally cost $75,000, has a book value of $20,000, and a market value of $25,000. Ignoring taxes, what is the opportunity cost of using this machine

Sagot :

Tundexi

Answer:

$25,000

Explanation:

Opportunity costs is based on market value, not historical costs or original costs. So, the opportunity cost of using this machine is $25,000

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