If you were to start your own business, your implicit costs would include the:
A. opportunity cost of the time you spend working at the business.
B. profit you earn over and above your normal profit.
C. interest that you pay on your business loans.
D. rent that you have paid in advance for the use of a building.
Answer: A
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Sarah is a high school graduate and James is a college graduate. Which of the following statements is true?
A) Sara is likely to have more human capital than James. B) James is likely to have more human capital than Sara. C) Both Sara and James are likely to earn the same wage in the labor market. D) Both Sara and James are likely to have the same amount of human capital.
An increase in demand combined with no change in supply
A) raises the equilibrium price. B) lowers the equilibrium price. C) results in only a movement rightward along the demand curve. D) decreases demand because the supply curve does not shift.