Final answer:
Chef salaries at Ellis's restaurant are categorized under 'labor costs.' The opportunity cost for a consultant earning $200 per hour is high, making it economically sensible for her to work and buy vegetables rather than grow them with less skill and efficiency. Therefore, the correct option is D.labor costs.
Step-by-step explanation:
When Ellis is working on her restaurant accounts, chef salaries are factored into the category of labor costs. Labor costs cover all payments made to employees, including their wages, salaries, and possible benefits. In the context of running a restaurant, Ellis would categorize all employee-related expenses under this heading.
The economic concept demonstrated in the question about the consultant who earns $200 per hour is known as opportunity cost. The consultant should spend her time working the consulting job and use part of her earnings to purchase vegetables because the opportunity cost of her time is very high. If she devoted that time to growing vegetables, which she's not skilled at, it would represent a significant loss in potential earnings from consulting.