Question

The value of a business owner's time is an example ofa. an opportunity cost. b. a fixed cost. c. an explicit cost. d. total revenue.

Answer 1

Answer: Opportunity cost

Explanation:

A. Opportunity cost can be defined as the next best alternative foregone , it is the cost of profit the business looses while choosing one alternative over other.

B. Fixed cost are those cost that do not change with the level of output produced in the firm.

C. In simple words the direct costs a business pay to the outsiders for running its operations is called explicit cost.

D. Total revenue is the amount of income a company has before deducting its expenses occurred to earn that income.

So from the above explanations we can conclude that  value of a business owner's time is an example of  opportunity cost.