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zlopas [31]
3 years ago
13

A young chef is considering opening his own sushi bar. To do so, he would have to quit his current job, which pays $20,000 a yea

r, and take over a store building that he owns and currently rents to his brother for $6,000 a year. His expenses at the sushi bar would be $50,000, for food and $2,000 for gas and electricity. What is the sum of his implicit costs?a. $26,000 b. $66,000 c. $78,000 d. $52,000 e. $72,000
Business
1 answer:
kobusy [5.1K]3 years ago
5 0

Answer: The correct answer is "a. $26,000".

Explanation: Implicit costs: Also known as opportunity costs have to do with alternative profit options, or money that we no longer receive when performing certain commercial actions.

A person incurs implicit costs when he waives an alternative action.

Implicit costs: $20000 + $6000 = $26000.

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