The implicit cost of a farmer's own labor is determined by

A) the cost of food,clothing,and shelter.
B) the price of the products sold.
C) wages in farming occupations.
D) the cost of purchased inputs.

Question

The implicit cost of a farmer's own labor is determined byA) the cost of food,clothing,and shelter.B) the price of the products sold.C) wages in farming occupations.D) the cost of purchased inputs.

RodRaphael DelaCruz · Accepted Answer

Final Answer : C, Explanation :  Implicit costs are the opportunity costs of using resources owned by the firm. For a farmer, the implicit cost of their own labor is determined by what they could earn in wages if they were employed in a different farming occupation instead of working on their own farm.

The implicit cost of a farmer's own labor is determined by

A) the cost of food,clothing,and shelter.
B) the price of the products sold.
C) wages in farming occupations.
D) the cost of purchased inputs.

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