Ed Van Zaig is considering opening a sushi bar. To do so, he would have to quit his current job, which pays $20,000 a year, and use a building that he owns and currently rents to his brother for $6,000 a year. His costs 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
A
Economics
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When the Federal Reserve buys Treasury bonds, it is called
A) a swap. B) an open market operation. C) a bond roll-over. D) bonding.
Economics
In the negative income tax plan, a guarantee of $5,000 and a tax rate of 50 percent imply a break-even income of which of the following figures?
a. $1,000 b. $2,500 c. $10,000 d. $12,500
Economics
What is the likely effect in an economy when total spending is too high?
a. inflation b. tax decreases c. unemployment d. efficiency
Economics
The___________states that in the short run, output will change as one input is varied while the others are held constant.
Fill in the blank(s) with the appropriate word(s).
Economics