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You Own a Building That Has Four Possible Uses: an Internet

Question 20

Multiple Choice

You own a building that has four possible uses: an Internet cafe,a coffee store,an ice cream store,and a bookstore.The value of the building in each use is $2,000; $3,000; $4,000; and $5,000,respectively.You decide to open an ice cream store.The opportunity cost of using this building for an ice cream store is


A) $2,000, the value if the building is used as an Internet cafe.
B) $3,000, the value if the building is used as a coffee store.
C) $3,333, the average of the values if the building is used for either an Internet cafe, a coffee store, or a bookstore.
D) $5,000, the value if the building is used for a bookstore.

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