Suppose a firm has the following expenditures per day: $240 for wages,$150 for materials,and $80 for equipment rental.The owner of the firm owns the building in which it operates.If the firm were not operating in the building,he could rent the building for $70 per day.Total daily revenue is $600.
-What are the daily implicit costs for the firm described above?
A) $70
B) $80
C) $150
D) $220

Question

Quizplus · Accepted Answer

The daily implicit cost for the firm is the opportunity cost of not renting out the building, which is $70 per day.

Suppose a Firm Has the Following Expenditures Per Day: $240