The opportunity cost of an apartment in a rent controlled market is equal to
A) the rent charged for the apartment.
B) the opportunity cost of searching for the apartment.
C) the rent charged for the apartment plus the opportunity cost of searching for the apartment.
D) nothing because of the surplus of apartments when there are rent controls.
E) the rent charged for the apartment minus the opportunity cost of searching for the apartment.

Question

Quizplus · Accepted Answer

The opportunity cost of an apartment in a rent-controlled market includes both the rent charged for the apartment and the opportunity cost of searching for the apartment. This is because both the actual rent paid and the time, effort, and possibly other costs associated with finding a rent-controlled apartment contribute to the total cost to the renter.

The Opportunity Cost of an Apartment in a Rent Controlled