Chris was the business manager for a real estate firm earning an annual salary of $40,000.Then Chris decided to become a consultant.Chris hired an administrative assistant at $15,000 per year and rents office space (utilities included) for $3,000 per month.Chris earned $100,000 in total revenue the first year as a consultant.
Chris's opportunity cost of running her own business is ______ which is the _______.
A) $15,000;implicit cost
B) $51,000;explicit cost
C) $40,000;implicit cost
D) $51,000;economic cost
Correct Answer:
Verified
Q1: Explicit costs:
A)are the only costs that matter
Q2: Which of the following would not be
Q3: It is always true that:
A)accounting profits are
Q5: The economic theory of business behavior assumes
Q6: Adam Smith coined the term "invisible hand"
Q7: Normal profits occur when:
A)accounting profits are positive.
B)economic
Q8: Economic profits are:
A)the same as accounting profits.
B)equal
Q9: If you were to start your own
Q10: Curly told Larry about his new business
Q11: Explicit costs:
A)measure the opportunity costs of the
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