An Individual Pays $100 Every Month as Rent for an Apartment,and

question 74

Multiple Choice

An individual pays $100 every month as rent for an apartment,and his monthly opportunity cost of commuting from the apartment to his place of work is $40.Which of the following statements is then true?

• A) The direct cost of renting the apartment is $140
• B) The indirect cost of renting the apartment is $140
• C) The direct cost of renting the apartment is $40, whereas the indirect cost of renting the apartment is $100
• D) The direct cost of renting the apartment is $100, whereas the indirect cost of renting the apartment is $40

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Definitions:

Adequacy

Adequacy refers to the suitability of something to meet the needs in its context or the sufficiency in quantity or quality to fulfill a specific requirement.

Consideration

Something of value exchanged between parties within a contract, serving as the reason or motive for entering into the agreement.

Adequacy

The sufficiency to meet the needs or requirements; often assesses whether something is enough in quantity or meets a certain standard.

Consideration

Something of value (such as money, services, or goods) exchanged between parties in a contract.