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Question
When an entrepreneur invests his own financial capital in order to start a business,
A) the opportunity cost of capital should be included in the economic cost of doing business.
B) the investment is treated as a fixed cost, so it should not be considered as a cost of doing business.
C) the firmʹs economic profits will exceed its accounting profits.
D) the accounting costs increase because the funds would otherwise have to be borrowed.
Answer
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Related questions
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