Assuming an entrepreneur does not pay herself,the $1,000 she could earn as an employee elsewhere is considered
A)An implicit cost.
B)An explicit cost.
C)A fixed cost.
D)A variable cost.

Question

Quizplus · Accepted Answer

The $1,000 that the entrepreneur could earn as an employee elsewhere is an implicit cost because it is the opportunity cost of her time and is not an explicit out-of-pocket expense.

Assuming an Entrepreneur Does Not Pay Herself,the $1,000 She Could