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Aleksandr-060686 [28]
3 years ago
15

Suppose Winston's annual salary as an accountant is $60,000, and his financial assets generate $4,000 per year in interest. One

day, after deciding to be his own boss, he quits his job and uses his financial assets to establish a consulting business, which he runs out of his home. To run the business, he outlays $8,000 in cash to cover all the costs involved with running the business, and earns revenues of $150,000. What are Winston's implicit costs?
Business
1 answer:
arsen [322]3 years ago
5 0

Answer:

$4,000

Explanation:

Implicit cost is the cost which is an income foregone internally, that is not the exact opportunity cost, here opportunity cost is salary foregone, that is $60,000.

But implicit cost would be $4,000 if the financial assets are now used in business, and are not left as they are.

Implicit cost is internally generated opportunity cost.

Since here he outlays, $8,000 let us say these were used earlier as financial assets to generate revenue, now $4,000 would be considered as implicit cost, that is earlier generated revenue from internal funds.

Final Answer

$4,000

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Suppose a commercial banking system has $40,000 of outstanding checkable deposits and actual reserves of $4,500. If the reserve
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Explanation:

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3 years ago
Premo Pens, Inc. is in the process of developing a new pen to replace its existing top-of-line Executive Model. Market research
oee [108]

Answer:

c. $24.00

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As a researcher, what would you do if you set to reject the null and found the null to be true?
soldi70 [24.7K]
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