Joe Runs a Landscape Company and Uses One of His

Multiple Choice

Joe runs a landscape company and uses one of his home's bedrooms as a home office. This office could be used to earn rental income from college students. If average rental income in Joe's neighborhood were to rise:

A) Joe's opportunity cost of using a bedroom as a home office would decrease.
B) Joe's landscape company would experience a decrease in demand for services at all prices.
C) Joe should expand his office space in his home.
D) Joe's opportunity cost of using a bedroom as a home office would increase.