Answer: $8,600
Explanation:
Implicit cost is also known as the opportunity cost which means that it is the benefit of the next best alternative that was foregone when the current decision was made.
The implicit cost here is therefore:
The $8,000 that Charles could have been making as a lifeguard.
The interest per year he could have been earning on the $5,000 he used to buy mowing equipment.
The depreciation on the mowing equipment because depreciation is not an explicit cost but an implicit one.
= 8,000 + (2% * 5,000) + (10% * 5,000)
= 8,000 + 100 + 500
= $8,600
LeBron James is one of the best basketball players in the country, was selected by the Cleveland Cavaliers as the first pick in the 2003 NBA draft, signing a three-year contract worth almost $13 million, with an option for a fourth year at $5.8 million. Had he decided to attend college instead, James would have incurred an opportunity cost of at least $19 million in forgone income to earn a four-year college degree.
Opportunity cost is the value you would gain or lose if you choose a different path or solution. The opportunity cost in this scenario is deciding to play in the NBA since college was too expensive. LeBron James ultimately saved time and money by taking the detour because he received a contract worth close to $13 million; otherwise, he would have had to pay more and spend more time attending a four-year college.
LeBron's decision to join the NBA right after high school graduation has an opportunity cost because he might have attended a four-year university or college instead. He was chosen by the Cleveland Cavaliers as the first overall choice in the 2003 NBA Draft
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Answer:
At 1.783 or more, the conversion yield better gain than sales the corn
Explanation:
The ethanol conversion become attractive if the cost for doing the conversion are lower than the sale revenue for the product.
<u>total cost: raw materials + conversion cost</u>
corn price: $ 3.75
conversion cost: $ 1.60
Total cost: $ 5.35
<u>output: gallon of ethanol per bushel</u>
3 gallons of ethanol per bushel
total cost / output = 5.35/3 = 1.783 cost per gallon
I think tools, design, and materials
