Suppose you own a small business. Last month, your total revenue was $6,000. In addition, you paid: $1,000 in monthly rent for office space.$200 in monthly rent for equipment.$3,000 to your workers in wages for the month.$1,000 for the supplies you used that month.If you correctly determine that your economic profit last month was negative $200, then it must be true that:
A. your implicit costs are $200 per month.
B. your implicit costs are $1,000 per month.
C. you do not have any implicit costs.
D. the rent you pay on your equipment is an implicit cost.
Answer: B
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