If a Firm Buys a Building So as to Have

question 76

Multiple Choice

If a firm buys a building so as to have office space for its workers,the monthly opportunity cost of the building is best measured as

• A) the monthly mortgage payment the firm must pay.
• B) the price the firm paid divided by twelve.
• C) zero.
• D) the rent the firm could earn if it rented the building to another firm.

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Definitions:

Social Capital

The networks, relationships, and social interactions that provide individuals and communities with value, facilitating cooperation and benefitting collective and individual actions.

Malcolm Gladwell

An author and journalist known for exploring the intricacies of social sciences through his books and writings.

Connector

An individual or tool that links people with each other or links concepts, resources, or systems together facilitating interaction or understanding.

Weak Tie

A connection or relationship between individuals in a social network that is not strong, frequent, or emotionally close, but can provide new insights and opportunities because of its diversity.