Which of the following is not an implicit cost?

Salary of the proprietor

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Return on entrepreneurs own investment

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Return on entrepreneurs own capital

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Wages of the employees

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Solution

The correct option is C Wages of the employees
The wage of employees acts as a direct variable cost that will depend on the extent of the production and thus it is an accounting cost and not an implicit cost. The other options describe implicit costs as they describe rewards on opportunities forgone by the decision to produce.

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