An example of an cost is when a firm issues more equity and an entrepreneur increases leisure time.

It seems like you're asking for an explanation of a cost example involving a firm issuing more equity and an entrepreneur increasing leisure time. Here's a step-by-step breakdown:

1. A firm decides to issue more equity: This means the firm is selling more of its shares to raise capital. This could be due to various reasons such as the need for more funds to expand the business, pay off debts, or reinvest in the business.

2. Cost incurred: The cost here could be dilution of ownership. When a firm issues more equity, the existing shareholders' stake in the company gets diluted. This means they now own a smaller percentage of the company than they did before the new shares were issued.

3. An entrepreneur increases leisure time: This implies that the entrepreneur is choosing to spend less time working on the business and more time on leisure activities.

4. Cost incurred: The cost here is the opportunity cost of the entrepreneur's time. By choosing to spend more time on leisure, the entrepreneur is giving up the opportunity to work on the business, which could potentially lead to more growth and profits.

So, in this context, the cost refers to the potential negative outcomes or trade-offs that result from the firm issuing more equity and the entrepreneur increasing leisure time.