Jennifer Borts moves her office from the premises she rents at a local mall to her home.As a result of this move,

Question

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Moving the office from the rented premises to home would result in a decrease in explicit costs such as rent, utilities, and maintenance expenses. However, there will be an increase in implicit costs such as the foregone rent that could have been earned by renting out the space, the opportunity cost of not having a separate space for work, and the use of personal space and resources for business purposes. Therefore, the total cost of running the business may not decrease and could even increase.

Jennifer Borts Moves Her Office from the Premises She Rents