Your Firm Owns an Old Truck That Is Used to Make

Multiple Choice

Your firm owns an old truck that is used to make local deliveries. The truck is fully depreciated and only costs $1.20 per hour to operate, but you could rent it to another firm for $15.00 per hour. What is the opportunity cost of operating this truck in your business?

A) $1.20 per hour
B) $15.00 per hour
C) $16.20 per hour
D) Less than $1.20 per hour