Question

Which of the following represents an economic cost, but not an accounting cost, of building and running a summer resort?

A) The wages paid to the workers hired to run the resort and tend to its guests.

B) The wages lost by the owner in pursuing his own venture, instead of working for an already established resort.

C) The cost of materials to build the main hotel, pools and guesthouses.

D) The money foregone by using the land on which the resort will stand, instead of selling it or using it for another venture.

E) The cost of hiring accountants to keep track of the company’s books.

Answer 1

Answer:

correct option is Option B and option  D  

Explanation:

solution

here as per given option B and D represent an economic cost  

but other three options A , C and E  are about the accounting cost  

so here only  B and D  only are the  implicit costs or the opportunity cost  

and there accounting cost not include the opportunity cost  

so the options  B and option  D