Firm Performance and Business Models

A circular resale unit has near-zero production cost but still costs to run. Which statement is most precise?

• ACost becomes irrelevant because circularity eliminates rivalry and substitutes
• BCost rises above new production because used goods require mandatory depreciation
• CVariable production cost can be near zero, but handling and platform costs still matter
• DTotal cost is zero, so resale units must always be pure profit regardless of scale