You Own a Small Deli That Sells Sandwiches, Salads, and Soup

question 46

Multiple Choice

You own a small deli that sells sandwiches, salads, and soup. Which of the following is an implicit cost of the business?

• A) wages paid to part-time employees
• B) the job offer you did not accept at a local catering service
• C) bread, meat, and vegetables used to produce the items on your menu
• D) your monthly utility bill

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Definitions:

Automatically Terminated

Refers to a condition in contracts or agreements where certain actions or failures to act result in the termination of the agreement without the need for further legal action.

Reasonable Amount

A quantity or level of something that is considered fair, appropriate, and within legal or prudent limits under the circumstances.

Unilateral Contract

A contract type where only one party makes a promise in exchange for an act by the other party.

Subject Matter Illegal

Pertaining to contracts or agreements where the subject or purpose violates the law or public policy and is therefore unenforceable.