Question
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
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)
$2,000, the value if the building is used as a cafe.
C)
$10,000, the sum of the values if the building is used for a cafe, a craft store, or a bookstore.
D)
$3,000, the value if the building is used as a craft store.
1
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started