Scenario: Betty's Cookie Shop
Betty runs a cookie shop where she sells cookies for $1 each.In order to run the business, she employs five people, each of whom worked a total of 500 hours last year; she paid them a wage of
$10 per hour.Her costs of equipment and raw materials add up to $75,000.Her business ability is legendary, and other companies have offered to pay Betty $100,000 if she would come to work for them.She also knows she could sell her cookie shop for $150,000.The bank in town currently pays an annual interest rate of 3% on all funds deposited with it.Assume there is no capital depreciation at this point.
(Scenario: Betty's Cookie Shop) Given the information provided, Betty's implicit and explicit costs are equal to:
A.$80,000.
B.$184,500.
C.$204,500.
D.$100,000.

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The Answer of Scenario: Betty's Cookie Shop
Betty runs a cookie shop where she sells cookies for $1 each.In order to run the business, she employs five people, each of whom worked a total of 500 hours last year; she paid them a wage of
$10 per hour.Her costs of equipment and raw materials add up to $75,000.Her business ability is legendary, and other companies have offered to pay Betty $100,000 if she would come to work for them.She also knows she could sell her cookie shop for $150,000.The bank in town currently pays an annual interest rate of 3% on all funds deposited with it.Assume there is no capital depreciation at this point.
(Scenario: Betty's Cookie Shop) Given the information provided, Betty's implicit and explicit costs are equal to:
A.$80,000.
B.$184,500.
C.$204,500.
D.$100,000.