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:

Cost

The amount of money required to purchase, produce, or maintain something.

Categorical

Pertains to data that can be divided into specific groups or categories that are mutually exclusive.

Categorical Data

Data that can be divided into groups or categories that do not have a numerical value or order.

Attributes

Characteristics or properties of objects in a dataset, often used in data analysis to describe elements accurately.