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Author Question: You own a building that has four possible uses: a tailor shop, a pharmacy, a sports bar, and an ... (Read 29 times)

Mr. Wonderful

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You own a building that has four possible uses: a tailor shop, a pharmacy, a sports bar, and an antique mall. The building's value in each use is $4,000; $6,000; $8,000; and $10,000, respectively. You decide to open a sports bar. The opportunity cost of using this building for a sports bar is


◦ $4,000, the value if the building is used as a tailor shop.
◦ $6,000, the value if the building is used as a pharmacy.
◦ $20,000, the sum of the values if the building is used for a tailor shop, a pharmacy, or an antique mall.
◦ $10,000, the value if you rented the building to someone else to use as an antique mall.


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Marked as best answer by Mr. Wonderful on Apr 19, 2019

carojassy25

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