Final answer:
Space not being used has an opportunity cost of zero because no alternative is being sacrificed. Costs in business can be divided into fixed, variable, and indirect, each with different implications on business operations.
Step-by-step explanation:
Space being used that would otherwise be idle has an opportunity cost of zero. This is because opportunity costs represent the potential benefits an individual, investor, or business misses out on when choosing one alternative over another. Since the space is not being used for anything else, its opportunity cost is zero as nothing is being foregone by using it.
Costs can also be categorized as fixed, variable, or indirect costs. Fixed costs are the costs that do not change with the level of output produced, such as rent on a factory or the expense of machinery. These costs are incurred regardless of how much is produced. Variable costs, on the other hand, vary with production levels, while indirect costs are not directly associated with the production, such as administrative expenses.