Marge opens an oxygen bar in a building she owns.She used to rent the building to her brother in law for $10,000 a year.To open the oxygen bar,Marge quit her job as a physician assistant,which paid $80,000 a year.As a bar owner,Marge has to pay $40,000 a year wages for her bartender,spend $25,000 a year for supplies,and the utilities bill is $9,500 a year.To cover the start-up costs,she used up all of her savings which earned $4,600 in interest.What are her explicit costs?
A) $40,000
B) $49,500
C) $84,600
D) $94,600
E) $74,500
Correct Answer:
Verified
Q1: The opportunity cost of a resource
A)includes both
Q3: Explicit costs are
A)not part of opportunity cost
B)the
Q8: All other things constant, higher implicit cost
Q9: If a firm's economic profit is positive,
Q11: Unlike implicit costs, explicit costs
A)reflect opportunity costs
B)include
Q11: Which of the following is not an
Q16: An implicit cost is
A)any cost a firm
Q17: Opportunity cost usually
A)cannot be measured
B)applies to labor
Q18: Implicit cost involves a direct cash payment
Q19: Cash payments for steel to be used
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