Scenario 13-4
Wanda owns a lemonade stand.She produces lemonade using five inputs: water,sugar,lemons,paper cups,and labor.Her costs per glass are as follows: $0.01 for water,$0.02 for sugar,$0.03 for lemons,$0.02 for cups,and $0.10 for the opportunity cost of her labor.She can sell 300 glasses for $0.50 each.
-Refer to Scenario 13-4.What are Wanda's implicit costs per glass?

Question

Quizplus · Accepted Answer

Implicit costs are the opportunity costs of using resources that the owner already possesses, such as Wanda's labor. In this scenario, Wanda's opportunity cost of her labor is $0.10 per glass.

Scenario 13-4 Wanda Owns a Lemonade Stand.She Produces Lemonade Using Five Inputs