Final answer:
Operating expenses for apartment management include utilities, lawn care, and legal fees but not vacancies and lost rents, which are opportunity costs. These costs are essential for maintaining property, and opportunity costs reflect the potential benefits forfeited from alternative choices.
Step-by-step explanation:
In the context of apartment building management, the operating expenses include costs that are necessary for the day-to-day maintenance and administration of the property. These would typically cover items such as utilities, lawn care and snow removal, and legal and accounting fees. However, the option that does not fall under operating expenses is 'vacancies and lost rents', as these are considered opportunity costs related to not having tenants rather than actual cash outflows for services or maintenance.
The concept of opportunity cost is crucial in economics and implies that for every choice made, there is a potential benefit that is forfeited because you chose an alternative. In the case of housing, if price ceilings are implemented, the opportunity cost may result in landlords providing lower quality housing due to reduced revenue.