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Costs of Production

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You are the owner of a family-owned restaurant. You do not pay yourself a salary or an hourly wage. How and why does this practice affect the economic cost of serving your patrons?

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First, let me explain to you the concept of "implicit cost"

Implicit cost is the amount of income you forgo by not taking your best alternative. For example, instead of operating your family owned restaurant, you could have worked in an office for $40000 per year, then your implicit cost for operating ...

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