Question

The owner of a small retail store does her own accounting work. How would you measure the opportunity cost of her​ work? The opportunity cost of the​ owner's accounting work is
A. the monetary amount that her time would have been worth in its next best use.
B. the difference between the monetary value of her time and the monetary amount that her time would have been worth in its next best use.
C. the difference between what she would have paid an accountant to do the work and the monetary value of her time.
D. the explicit cost of the​ work, which is zero since she does it herself.
E. the monetary amount that she would have paid an accountant to do the work.

Answer 1

Answer:

A. the monetary amount that her time would have been worth in its next best use. 

Explanation:

Opportunity cost is the value of the next best use of a resource.

Opportunity cost is the benefit that is lost when an economic agent chooses one alternative over another.

The owner' s opportunity cost is the next best use of her time if she wasn't doing the accounting.

I hope my answer helps you.