A shopkeeper works in his own shop instead of taking a job paying ₹15,000 a month. In economics, this ₹15,000 is

an explicit cost of running the shopCorrect answerYour answeran implicit cost of running the shopCorrect answerYour answerthe shop's profitCorrect answerYour answernot a cost at allCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer B

Correct answer: B

No money is paid out, but the owner gives up a salary he could have earned.
A forgone earning of the owner's own input is an implicit cost.

Concept: Implicit cost of the owner's labour
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsFixed and variable cost

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A shopkeeper works in his own shop instead of taking a job paying ₹15,000 a month. In economics, this ₹15,000 is

Explanation