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Mika Borrows $100,000 to Open Up Her Own Beauty Shop

Question 57

Multiple Choice

Mika borrows $100,000 to open up her own beauty shop. She pays 5 percent interest on her loan. In order to account for all costs of her business, Mika must not forget:


A) the implicit cost of $100,000.
B) the implicit cost of $5,000.
C) the explicit cost of $105,000.
D) the explicit cost of $5,000.

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