Josh and Alex work as design engineers creating high‑end lighting fixtures. After one particularly enlightened afternoon, they decide to follow their dreams and open a cupcake bakery. Please classify their various costs. Supplies like sugar, butter, and baking trays Advertising space taken out on a social networking site The salary Alex earned in his previous job designing light fixtures The garage spaced used for baking that can no longer be rented out to a college student The money they pay their neighbor's six-year old son to deliver cupcakes to their customers Implicit costs Not a cost Explicit costs
Josh and Alex work as design engineers creating high‑end lighting fixtures. After one particularly enlightened afternoon, they decide to follow their dreams and open a cupcake bakery. Please classify their various costs. Supplies like sugar, butter, and baking trays Advertising space taken out on a social networking site The salary Alex earned in his previous job designing light fixtures The garage spaced used for baking that can no longer be rented out to a college student The money they pay their neighbor's six-year old son to deliver cupcakes to their customers Implicit costs Not a cost Explicit costs
Economics Today and Tomorrow, Student Edition
1st Edition
ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter10: Financing And Producing Goods
Section: Chapter Questions
Problem 4AA
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Josh and Alex work as design engineers creating high‑end lighting fixtures. After one particularly enlightened afternoon, they decide to follow their dreams and open a cupcake bakery. Please classify their various costs.
- Supplies like sugar, butter, and baking trays
- Advertising space taken out on a social networking site
- The salary Alex earned in his previous job designing light fixtures
- The garage spaced used for baking that can no longer be rented out to a college student
- The money they pay their neighbor's six-year old son to deliver cupcakes to their customers
Implicit costs | Not a cost | Explicit costs |
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