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 implicit costs?
A) $26, 000
B) $66, 000
C) $78, 000
D) $52, 000
E) $72, 000
Correct Answer:
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Q1: The opportunity cost of a resource
A)includes both
Q3: Explicit costs are
A)not part of opportunity cost
B)the
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Q5: The reason economists assume that firms try
Q6: If Ripco owns the building where it
Q7: John moved his office from a building
Q8: All other things constant, higher implicit cost
Q9: If a firm's economic profit is positive,
Q10: The difference between a firm's total revenue
Q11: Unlike implicit costs, explicit costs
A)reflect opportunity costs
B)include
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