Ralph owns a small pizza restaurant,where he works full-time in the kitchen.His total revenue last year was $100,000,and his rent was $3,000 per month.He pays his one employee $2,000 per month,and the cost of ingredients and overhead averages $500 per month.Ralph could earn $35,000 per year as the manager of a competing pizza restaurant nearby.His total implicit costs for the year were:

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Quizplus · Accepted Answer

Implicit costs are the opportunity costs of using resources owned by the business. Ralph's implicit cost is the $35,000 he foregoes by not working as a manager at a competing restaurant.

Ralph Owns a Small Pizza Restaurant,where He Works Full-Time in the Kitchen.His