Pete Owns a Shoe-Shine Business

question 546

Multiple Choice

Pete owns a shoe-shine business. Which of the following costs would be implicit costs? (i)
Shoe polish
(ii)
Rent on the shoe stand
(iii)
Wages Pete could earn delivering newspapers
(iv)
Interest that Pete's money was earning before he spent his savings to set up the shoe-shine business

• A)(i) and (ii) only
• B)(iv) only
• C)(iii) and (iv) only
• D)(i), (ii), (iii), and (iv)

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