Implict cost
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A business owner makes 600 items by hand in 200 hours. She could have earned $30 an hour working for someone else. If the item sells for $40 each, and the explicit costs total $8,000, then:
a. total revenue equals $8,000.
b. implicit costs equal $6,000.
c. the accounting profits equal $10,000.
d. the economic profit equals $16,000.
You must show these math calculations
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Solution Summary
Implict cost is determined.
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Revenues: Quanity sold * Price= 600*40= $24000
Accounting Cost= Explicit cost= $8000
Accounting ...
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