You Own a Building That Has Four Possible Uses: a Cafe

question 239

Multiple Choice

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) $2,000, the value if the building is used as a cafe.
• B) $3,000, the value if the building is used as a craft store.
• C) $10,000, the sum of the values if the building is used for a cafe, a craft store, or a bookstore.
• D) $5,000, the value if you rented the building to someone else to use as a bookstore.

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Definitions:

Goal Seek

A function in spreadsheet applications that finds the input value needed to achieve a targeted outcome by altering one variable.

Targeted Profit

The specific amount of profit that a business aims to achieve within a certain period.

Refresh The Data

The process of updating or reloading data to ensure the information displayed is current and accurate.

Data Model

An abstract model that organizes elements of data and standardizes how they relate to one another and to properties of the real world entities.