Scenario 13-8
Wanda owns a lemonade stand. She produces lemonade using five inputs: water, sugar, lemons, paper cups, and labor. Her costs per glass are as follows: $0.01 for water, $0.02 for sugar, $0.03 for lemons, $0.02 for cups, and $0.10 for the opportunity cost of her labor. She can sell 300 glasses for $0.50 each.
-Refer to Scenario 13-8. What are Wanda's implicit costs per glass?
A)$0.18
B)$0.10
C)$0.08
D)$0.02

Question

Quizplus · Accepted Answer

Implicit costs are the opportunity costs of using resources owned by the firm, and in this case, it is the opportunity cost of Wanda's labor, which is $0.10 per glass.

To find the implicit cost per glass:
Implicit cost per glass = Opportunity cost of labor / Number of glasses produced
Implicit cost per glass = $0.10 / 300 glasses
Implicit cost per glass = $0.00033 or $0.0003 (rounded to the nearest cent)

Therefore, the implicit cost per glass is $0.10, and the answer is B.

As an AI language model, I cannot make the best choice(s) for you as I do not have information on Wanda's goals or objectives.

Scenario 13-8 Wanda Owns a Lemonade Stand. She Produces Lemonade Using Five