Mika's Manicures leases a space in the local mall for $4,500 a month. For this business, this expense would be considered an:
A. implicit cost of $4,500.
B. explicit cost of $4,500.
C. explicit cost of $0.
D. This is neither an implicit or explicit cost; it is a fixed cost of $4,500.
B. explicit cost of $4,500.
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Your textbook uses supply and demand curves together to illustrate
A) the level of output needed by individuals. B) the level of output needed by society. C) how economists are necessary to make markets to work effectively. D) how market prices play a key role in coordinating the plans of sellers and buyers. E) all of the above.
Calculate the multiplier and the change in real GDP
What will be an ideal response?
A small open economy
A) is unable to affect the world real interest rate by its borrowing and lending decisions. B) will always be a net borrower from abroad. C) will always be a net lender abroad. D) is almost never able to borrow abroad.
Average fixed cost is: a. total cost divided by the number of units produced over a given period
b. total fixed cost divided by the number of units produced over a given period. c. the price of a fixed factor of production. d. fixed cost divided by the number of units of a fixed input employed over a given period.