Suppose you quit your job to start a business.In the first month,your total revenue was $6,000.You paid:
$1,000 in monthly rent for office space.
$200 in monthly rent for equipment.
$3,000 to your workers in wages for the month.
$1,000 for the supplies you used that month.
You determine that your profit that month was negative $200.Why?
A) You did the math incorrectly.
B) You accounted for lost salary of $200.
C) You accounted for lost salary of $1,000.
D) Your equipment rent is an implicit cost.
Correct Answer:
Verified
Q11: Explicit costs:
A)measure the opportunity costs of the
Q12: Implicit costs:
A)are always fixed.
B)measure the forgone opportunities
Q13: If a firm is earning zero economic
Q14: Chris was the business manager for a
Q15: An example of an implicit cost is:
A)interest
Q17: Accounting profits are:
A)equal to total revenues minus
Q18: Which of the following is NOT an
Q19: Accounting profits minus implicit costs equals:
A)total revenues.
B)economic
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