The opportunity cost of owner-provided labor is the

Question

Quizplus · Accepted Answer

Opportunity cost refers to the benefits forgone when one choice is made over another. For owner-provided labor, the opportunity cost is the salary the owner could have earned if she worked at her best alternative job. This is because if the owner chose to work in her own business instead of her best alternative job, she would be giving up the salary she could have earned at that job. Therefore, the answer is C.

The Opportunity Cost of Owner-Provided Labor Is the