Davy's Doggie Daycare rents a warehouse and field for $2,000 a month to house its boarding pooches.Farmer Fred owns the property,he used to use it for farming and made $3,000 a month,but has since retired.What is the cost of the warehouse and field to Davy?
A) It is an explicit cost of $2,000.
B) It is an implicit cost of $3,000.
C) It is an implicit cost of $0.
D) There is both an explicit and implicit cost totaling $5,000.
Correct Answer:
Verified
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