Suppose you are planning to open a lemonade stand. List separately all the explicit and implicit costs that might be involved
The obvious explicit costs would include the price of the stand, the lemons, sugar, water, sign, etc. It may also require the purchase of a license and the paying of taxes, depending on the government regulations of the particular locale. Implicit costs would be the opportunity cost of the funds used to pay the explicit costs plus the opportunity costs of your time to operate the lemonade stand.
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"The Florida freeze has destroyed 40% of the orange cro
A) Yes. The freeze would not reduce the supply. B) Yes. The higher price would not reduce the demand. C) Yes. It assumes the demand curve for oranges is vertical. D) Yes. It assumes the demand curve for oranges is upward-sloping.
The above table shows the total product schedule for the campus book store. If each employee is paid $6 per hour and there are no other variable costs, then at what level of books sold per hour does the marginal cost begin to increase?
A) 41 books per hour B) 59 books per hour C) 73 books per hour D) 90 books per hour