Question

Kieron is currently working as an automobile detailer who eans $45,000lyear. He currently has living costs of S30,000/year. offers $50,000 per year, where he expects his living costs to be $33,000/year Select the item from the list provided to make the following statements true Kieron has recently received a job offer interstate which 1. Accounting profit 2. -$2000/year 3. Total cost 4. Economic profit 5. Economic loss 6. A normal profit 7. $12000/year 8. $33000/year 9. Explicit cost 10. $45000/year 11. $1900 12. Implicit cost By choosing to stay in his current job, Kieron is making a/an_ Kieron's economic profit/loss by choosing to remain in his current job is Kieron's explicit cost if he chose to take the job offer interstate would be

Answer 1

Answer 1 : Option 5 is correct. By choosing to stay in his current job, kieron is making an economic loss.Economic loss means loss that has been suffering including opportunity cost. Opportunity cost = $17000 (foregone)

Answer 2: Option 2 is correct. Economic loss is the loss which has been incurred within the business.

Economic loss = -$2000

Answer 3 : Option 8 is correct. Kieron explicit cost if he chooses to take the job offer to interstate would be $33000. It is cost which actually incurred.