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:

Binding

Legally enforceable and obligatory; often referring to agreements, decisions, or rulings.

Parties

Individuals or entities involved in a legal agreement or dispute.

Pleadings

Written documents submitted by parties in a legal action, outlining the claims and defenses to be addressed by the court.

Post-Judgment Requests

Applications or motions made to a court for additional orders or enforcement actions after a judgment has been entered.