A young chef is considering opening his own sushi bar.To do so, he would have to quit his current job, which pays $20, 000 a year, and take over a store building that he owns and currently rents to his brother for $6, 000 a year.His expenses at the sushi bar would be $50, 000 for food and $2, 000 for gas and electricity.What are his explicit costs?
A)$26, 000
B)$66, 000
C)$78, 000
D)$52, 000
E)$72, 000

Question

Quizplus · Accepted Answer

His explicit costs include the expenses directly related to running the sushi bar, which are $50,000 for food and $2,000 for gas and electricity. Therefore, his explicit costs are $52,000.

A Young Chef Is Considering Opening His Own Sushi Bar