Anthony decides to open a café in his garage. He takes the help of his friend, Tess, who agrees to wait on customers for the initial few months. Which of the following is an example of an explicit cost that Anthony could possibly incur?
a. The salary that Anthony could have received by working at a bake house
b. The salary that Tess could have received by working at any other café
c. The price of ingredients required by Anthony
d. The payment that Anthony could have received by renting out his garage to a start up
c
You might also like to view...
A recession shows
A) supply always equals demand. B) supply never equals demand. C) thousands of businesspeople have misread market signals. D) real GDP must be lower than nominal GDP. E) not enough households are using their credit cards.
Which of the following is a macroeconomic question? a. What is a firm's profit-maximizing level of output? b. How will economic growth affect unemployment? c. How will a consumer maximize his utility?
d. How will a monopolist maximize his profit?
An increase in real per capita income will generally lead to
a. a cleaner environment and more time for recreation. b. a reduction in life expectancy because working conditions are less desirable. c. an increase in the number of hours worked by residents. d. an increase in real GDP that is less rapid than the increase in population
A decrease in net taxes at a given price level leads to
A. a decrease in aggregate demand. B. no change in aggregate demand. C. a decrease in aggregate supply. D. an increase in aggregate demand.