alleryStart learning →An owner uses her own shop, which could be let for Rs 30,000 a month. The implicit cost is?
ARs 30,000 a month
BRs 15,000 a month
CNil, as no cash is paid
DThe shop's book value
Answer & Solution
Correct answer: A. Rs 30,000 a month
Using an owned asset forgoes the rent it could earn, so the notional cost is Rs 30,000 a month.
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