--%>
Assignment Help - homework help

Problem on annual implicit cost

To begin up his own business, Mitch quit his salaried job and invested $10,000 in savings which had earned him $1,000 per year in interest. He as well employs an apartment as his office that he previously had rented out for $6,500 per year. Which of the following is not an annual implicit cost of the Mitch’s new business? (1) The $10,000 of savings he invests. (2) The $6,500 in rent. (3) His previous salary. (4) The $1,000 in interest. (5) All the above are implicit costs.

Find out the right answer from the above options.

   Related Questions in Microeconomics

  • Q : Economic profits maximizing When this

    When this monopolistic competitor produces Q units, this is maximizing: (w) sales development and its market share. (x) total revenue. (y) economic profits. (z) total fixed cost and its managers' salaries.

  • Q : Total increase in national income In an

    In an economy the MPC is 0.75. Investment expenses in the economy raise by Rs.75 crore. Compute total increase in national income.

    		•
  • Q : Ownership shares in corporation I have

    I have a problem in economics on Ownership shares in corporation. Please help me in the following question. The Ownership shares in a corporation are termed as: (1) Bonds. (2) Entrepreneurial capital. (3) Common stock. (4) Total worth. (5) Retained equity.

  • Q : Illustration of Substitution Effect

    Sally is very rich that money hardly matters to her, although when the price of JIF chunky peanut butter doubled Sally switched to Peter Pan chunky peanut butter. This alters is an example of the: (1) Income effect. (2) Payback effect. (3) Substitution effect. (4) Pri

    		•
  • Q : Most efficient production technique of

    Refer to the given data give the answer of following question. In view of the indicated resource prices, the economically most efficient production technique(s) is (are) technique(s): A) #1. B) #2 and #4. C) #3. D) #1 and #3.

    Q : Why production possibility curve is

    Why production possibility curve is concave? Answer: This is due to increasing the marginal opportunity cost.

    		•
  • Q : Normal market supply curves I have a

    I have a problem in economics on Normal market supply curves. Please help me in the following question. The actuality that normal market supply curves slope upward is most obviously due to: (i) The lower costs incurred as production rises. (ii) Overti

    		•
  • Q : Determinants that consumers want to buy

    In addition to price, what are the other determinants that consumers want to buy?

    		•
  • Q : Highest income in supply Glynn s weekly

    Glynn s weekly income would be the highest at: (1) point a. (2) point b. (3) point c. (3) point d. (4) point e. 1621_Labor-Leisure Trade-off</span></p> </div> <!-- /comment-box --> </li> </td> </tr><tr> <td> <li> <div class=

    Q : Numerical problem on Relative Prices

    When the market price of a gallon of gas is similar as the cost of 4 pineapples in dollars, the relative price of the pineapple is: (i) 1/4 of a gallon of gas. (ii) 25 cents. (iii) 4 gallons of gas. (iv) $4.00. Can someone please h

    		•