If you, as sole proprietor of a corner grocery store, work 15 hours per day, six days a week but do not take a money wage payment, then the cost to your firm of your labor is your
a. opportunity cost and is considered an explicit cost
b. opportunity cost and is considered an accounting cost
c. opportunity cost and is considered an implicit cost
d. explicit cost and is considered an opportunity cost
e. implicit cost even though it is considered an explicit cost
C
You might also like to view...
Which of the following leads to the demanders paying all of a tax?
A) The supply is unit elastic. B) The supply is perfectly inelastic. C) The demand is perfectly elastic. D) The demand is perfectly inelastic.
Using the quantity equation, if the velocity of money grows at 5 percent, the money supply grows at 10 percent, and real GDP grows at 4 percent, then the inflation rate will be
A) 19 percent. B) 15 percent. C) 11 percent. D) 6 percent.
The additional revenue earned from hiring one more worker is known as the
A) marginal physical product of labor. B) marginal revenue product of labor. C) marginal factor cost of labor. D) marginal utility of labor.
Explain the differences between external costs, private costs, and social costs and how the presence of external costs leads to market failure.
What will be an ideal response?