Asked by Dylan Gauthier on Jul 02, 2024
Verified
If you own a condo and you decide to lease it to your cousin,
A) there is no opportunity cost of leasing the condo because you own it.
B) there is an opportunity cost of leasing the condo because you could have chosen to live in it.
C) there is no opportunity cost of leasing the condo because you collect rent from your cousin.
D) the only cost relevant to this decision is the price you paid for the condo.
Lease
A contract by which one party conveys land, property, services, etc., to another for a specified time, usually in return for periodic payments.
- Measure the trade-off expense related to individual choices and economic interactions.
Verified Answer
AB
Alton Bragg7 days ago
Final Answer :
B
Explanation :
Opportunity cost refers to the benefit that is missed out on when choosing one alternative over another. In this case, by leasing the condo to your cousin, you are foregoing the opportunity to live in it yourself, which represents the opportunity cost of this decision.
Learning Objectives
- Measure the trade-off expense related to individual choices and economic interactions.