Five months ago Wilson opened up a health club. Which of the following is an implicit cost related to the health club A. Wilson previously worked as an accountant, earning $3,000 a month B. Wilson usually eats four hamburgers a day, priced at $3 each C. Wilson paid $100 for the pest control exterminator to spray the health club D. Wilson paid $120 for an outside laundry service to clean the towels used at the club

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Business

Maia Nelson

10 March, 15:30

Five months ago Wilson opened up a health club. Which of the following is an implicit cost related to the health club A. Wilson previously worked as an accountant, earning $3,000 a month B. Wilson usually eats four hamburgers a day, priced at $3 each C. Wilson paid $100 for the pest control exterminator to spray the health club D. Wilson paid $120 for an outside laundry service to clean the towels used at the club

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Answers (1)

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Keaton · Answer 1

Option "A" is the correct answer to the following statement.

Explanation:

Implicit cost is a special type of opportunity cost, its generate when an organization or a business has to pay his cost and does not necessary to show it. for example, a businessman gets a salary from his organization.

In this situation, Wilson owns a club and works as an accountant in it. This type of cost defines an Implicit cost for Wilson's health club.