Businesses that fail to account for implicit costs,like the strawberry farmer,Hiroshi Fujishige,who failed to consider the enormous opportunity of selling his property to Disneyland,will
A)Go out of business immediately.
B)Make higher-than-normal profits.
C)Make more money when they shut down.
D)Have to increase revenues in order to stay in business.

Question

Quizplus · Accepted Answer

Implicit costs, such as the opportunity cost of not selling land to Disneyland, can lead to situations where a business might actually make more money by shutting down and taking advantage of the opportunity, rather than continuing operations.

Businesses That Fail to Account for Implicit Costs,like the Strawberry