A young chef is considering opening his own sushi bar. To do so, He would have to quit his current job, which pays $20000 a year, and take over a store building he owns and currently rents to his brother for 6,000 dollars a year. His exspenses at the sushi bar would be $50000 for food and $2000 for gas and electricity. What are the expliciit costs?
1) 66000
2) 52000
3) 26000
4) 72000
5) 78000
is the answer b since her forgone salary and the rental of hius brother place are implictit costs
2007-08-13 14:39:23 · 3 answers · asked by Anonymous in Social Science ➔ Economics
yes you are rite it is B because the other two costs are a form of opportunity costs which is also an implicit cost.
so the explicit costs are what is paid for the materials& electricity with gas here
2007-08-13 15:58:19 · answer #1 · answered by Anonymous · 0⤊ 0⤋
You are getting all these right, lol. No need for you to be asking
implicit 20,000 + 6,000
explicit 50,000 + 2,000 = 52,000
2007-08-13 14:49:47 · answer #2 · answered by JuanB 7 · 0⤊ 0⤋
You are correct. Explicit costs don't include what you would otherwise earn.
2007-08-13 14:45:50 · answer #3 · answered by Jeff C 3 · 1⤊ 0⤋