If You Own a Building and You Decide to Use

question 153

Multiple Choice

If you own a building and you decide to use that building to open a restaurant,

• A)there are no sunk costs involved in this decision.
• B)there is no opportunity cost of using this building for a restaurant because you own it.
• C)the only cost relevant to this decision is the price you paid for the building.
• D)there is an opportunity cost of using this building for a restaurant because it could have been used in other ways.

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Definitions:

Self-Service

A service delivery model where customers perform actions or access services on their own, without direct assistance from staff, such as in supermarkets or online platforms.

Automated-Service

A type of service that uses technology to perform tasks without human intervention.

Gas Stations

Retail establishments that sell fuel for motor vehicles and often offer additional services or products such as convenience store items.

Franchisor

An entity that grants the right to use its trademark, business model, and operational system to an individual or company (the franchisee) under agreed-upon terms.