Answer: This question is incomplete, so in order to answer it, we must first complete the question. What we are looking for is the daily explicit costs made by the firm in the question above.
The total daily explicit cost is $470.
Explanation:
Explicit costs are the costs that are incurred by a firm in the course of running a business. This simply means the payments that a firm makes to others during a production cycle. These costs include wages, rent, purchase if materials, utilities, and anything that the firm must make payments for.
In the question above, we can list out the costs incurred by the firm as follows:
Wages ---------------- $240
Materials ------------- $150
Equipment rental -- $80
Total explicit costs incurred is therefore,
240+150+80
= $470.
