Tom opens a sandwich shop; which of the following is NOT an economic cost (total cost) of running his business?
A) his forgone earnings as a book editor, his next best opportunity for employment
B) the interest income he could have earned on the money he invested in his business from savings
C) the wages that he pays his workers
D) the expenses for his own lunch every day

Question

Quizplus · Accepted Answer

The expenses for his own lunch every day would be considered a personal expense and not a direct cost of running his sandwich shop. A, B, and C are all considered economic costs as they involve monetary expenditures related to the business.

Tom Opens a Sandwich Shop; Which of the Following Is