A recent study found that it was cheaper to buy a chicken dinner from Kentucky Fried Chicken than it was to prepare it at home.The researcher included all costs including the imputed value of time involved to prepare the meal at home.This study illustrates the
A)value of marginal analysis.
B)law of increasing costs.
C)difference between real costs and money costs.
D)cost disease of the service sector.

Question

Quizplus · Accepted Answer

The study highlights the difference between real costs (which include the imputed value of time and other non-monetary factors) and money costs (the actual cash spent to purchase goods or services). By accounting for the value of time, it demonstrates how the real cost of preparing a meal at home can exceed the money cost of buying it ready-made.

A Recent Study Found That It Was Cheaper to Buy