wongposhum

CE MC 1994-3
Mr. Lee owns a photographic studio. Previously he received $30000 per month by letting it out. He now does not let the studio, but, instead he uses the premises for his own business. He also employs a model at $10000 per month.

What is Mr. Lee’s opportunity cost of using the studio by himself?

A.$10000 per month
B.$20000 per month
C.$30000 per month
D.$40000 per month

why the ans is C, not D? plz help help !

andylai

引用:

原帖由 wongposhum 於 2014-8-2 12:47 PM 發表
CE MC 1994-3
Mr. Lee owns a photographic studio. Previously he received $30000 per month by letting it out. He now does not let the studio, but, instead he uses the premises for his own business. He  ...

The question is asking about "Using cost", not "running cost"!!!

HKD 10000 for model fees is running cost of his studio, not using cost of his studio.

Opportunity cost is easy to learn, but difficult to master!!!

Please refer to my notes (especially point 4) attached below.

wongposhum

thank you very much.I understand now. You are so nice and helpful : )

kazaf0719

  In andy lai we trust

Memorytron

Lai sir is great You speak in a way that even I can understand