If You Own a Building and You Decide to Use

question 141

Multiple Choice

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

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

---

Definitions:

4th Worker

The concept or individual representing the fourth hire in a sequence, often associated with incremental contribution or changes in team dynamics.

Short Run

A period of time in economics during which at least one input, like plant size, is fixed and cannot be changed.

Production Costs

The total expenses incurred in the process of producing or manufacturing goods or services.

Inputs

Resources such as raw materials, labor, and capital used in the production process to create goods or services.