Explicit and Implicit Costs Juan and Julia contributed $50,000 of their own money to the company They bought equipment f
Posted: Thu May 19, 2022 10:30 am
Explicit and Implicit Costs
Juan and Julia contributed $50,000 of their own money to the
company
They bought equipment for $3,000
They hired an employee with a salary of $20,000
Juan quit his job where he earned $30,000
Julia quit part of her job where she earned $15,000
· Purchases of materials for the business were $10,000
· At the end of the year the value of the equipment is
$28,000
· A business loan of $100,000 pays 6% annual interest
The normal profit based on the above data from running the business
is $30,000.
b. According to the data, what is the value of the explicit
costs?
_________.
Juan and Julia contributed $50,000 of their own money to the
company
They bought equipment for $3,000
They hired an employee with a salary of $20,000
Juan quit his job where he earned $30,000
Julia quit part of her job where she earned $15,000
· Purchases of materials for the business were $10,000
· At the end of the year the value of the equipment is
$28,000
· A business loan of $100,000 pays 6% annual interest
The normal profit based on the above data from running the business
is $30,000.
b. According to the data, what is the value of the explicit
costs?
_________.