less than the economic cost. Implicit cost of owners’ time = forgone earnings = best alternative earnings – salary in own business Q1: Gameela works at a job that pays $60,000 per year. If she operates her own business, she would pay herself a salary of $15,000 per year. What are the accounting cost and the economic cost of her time and effort if Gameela operates the business? A: The accounting cost is $15,000. The economic cost is $60,000 (or possibly even more from a different job), which is made…
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