Tanesha sells homemade candles over the Internet.Her annual revenue is $64,000 per year, the explicit costs of her business are $17,000, and the opportunity costs of her business are $22,000.What are the implicit costs of her business?

Question

Quizplus · Accepted Answer

Implicit costs are the opportunity costs of using resources owned by the business for its current purpose rather than the next best alternative. In this case, the opportunity costs of Tanesha's business are $22,000, which are the implicit costs.

Tanesha Sells Homemade Candles Over the Internet