A young chef is considering opening his own sushi bar. To do so, he would have to quit his current job, which pays $20,000 a year, and take over a storage building that he owns and currently rents to his brother for $6,000 a year. His expenses at the sushi bar would be $50,000 for food and $2,000 for gas and electricity. The chef's implicit costs are equal to _____.
a. ?$26,000
b. ?$52,000
c. ?$66,000
d. ?$78,000
e. ?$72,000
Answer: a. ?$26,000
You might also like to view...
Refer to Scenario 14-1. M2 in this simple economy equals
A) $3,000. B) $8,000. C) $14,000. D) $21,000.
Describe the transition from short-run to long-run equilibrium in a monopolistically competitive industry
What will be an ideal response?
Solutions to structural stagnation require difficult supply-side structural changes to accompany any demand-side stimulus if they are to be successful in reducing unemployment significantly.
Answer the following statement true (T) or false (F)
The firm's short-run supply curve shows the relationship between the price of a good and the:
A. quantity demanded of that good. B. quantity supplied of that good. C. willingness of consumers to purchase the good. D. firm's capacity output.