You own a building that has four possible uses: a cafe, a craft store, a hardware store, and a bookstore. The value of the building in each use is $2,000; $3,000; $4,000; and $5,000, respectively. You decide to open a hardware store. The opportunity cost of using this building for a hardware store is
A. $5,000, the value if you rented the building to someone else to use as a bookstore.
B. $10,000, the sum of the values if the building is used for a cafe, a craft store, or a bookstore.
C. $2,000, the value if the building is used as a cafe.
D. $3,000, the value if the building is used as a craft store.
Answer: A
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Frieda is at her local florist to buy a dozen roses. She is willing to pay $75 for the roses, and buys them for $75. Frieda's consumer surplus from the purchase is
A) $150. B) $75. C) $37.50. D) $0.
If Sam's $800 earns him a 6 percent rate of interest, each year he receives
a. $480 b. $48 c. $4.80 d. $80 e. $75
Ordinary commercial banks can expand the supply of money by
a. printing up currency when they need it. b. buying and selling government bonds to the general public. c. using a portion of their deposits to extend additional loans. d. reducing their vault cash and increasing their deposits with the Fed.
Is gdp adjusted for changes in prices
What will be an ideal response?