Economics 9708 · AS & A Level · 7.5

7.5 — practice question

An economist works out that, over the course of a year, a firm has the following costs (in $000): wages and salaries 150; opportunity cost of owner’s time 35; materials 80; rent 30; marketing fees 20; interest on bank loans 25; interest forgone on finance provided by owner 10. By how much does total cost as defined by an economist exceed the total cost as defined by an accountant?

  • A$75 000
  • B$45 000
  • C$35 000
  • D$10 000

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