Assuming the 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.

Question

Quizplus · Accepted Answer

Since the entrepreneur could have earned $1,000 as an employee elsewhere, but chooses not to pay herself in her own business, the $1,000 represents a potential income that she is sacrificing in order to run her business. This opportunity cost is an implicit cost, which is a non-monetary cost and therefore not recorded in the business's accounting records.

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