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An Individual Pays $100 Every Month as Rent for an Apartment,and

Question 74

Multiple Choice

An individual pays $100 every month as rent for an apartment,and his monthly opportunity cost of commuting from the apartment to his place of work is $40.Which of the following statements is then true?


A) The direct cost of renting the apartment is $140
B) The indirect cost of renting the apartment is $140
C) The direct cost of renting the apartment is $40, whereas the indirect cost of renting the apartment is $100
D) The direct cost of renting the apartment is $100, whereas the indirect cost of renting the apartment is $40

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