Refer to the data. Creamy Crisp's implicit costs are:    A. $150,000   B. $94,000   C. $136,000   D. $156,000

Survey Of Economics
10th Edition
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Proudction Costs
Section: Chapter Questions
Problem 8SQP
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  1. The following is cost information for the Creamy Crisp Donut Company:

    Entrepreneur's potential earnings as a salaried worker = $50,000
    Annual lease on building = $22,000
    Annual revenue from operations = $380,000
    Payments to workers = $120,000
    Utilities (electricity, water, disposal) costs = $8,000
    Value of entrepreneur's talent in the next best entrepreneurial activity = $80,000
    Entrepreneur's forgone interest on personal funds used to finance the business = $6,000

    Refer to the data. Creamy Crisp's implicit costs are: 

      A.

    $150,000

      B.

    $94,000

      C.

    $136,000

      D.

    $156,000

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