If you are a sole proprietor of a firm and you do not pay yourself a regular wage,then the value of the wage you could have earned elsewhere is

Question

Quizplus · Accepted Answer

The value of the wage that the sole proprietor could have earned elsewhere is an opportunity cost and falls under the category of implicit cost. Implicit costs refer to the opportunity cost of using resources that the firm already owns or the cost of foregoing alternative opportunities. Hence, the correct option is C, an implicit cost.

If You Are a Sole Proprietor of a Firm and You