Question

D Question 23 0.6 pts Use the following information to answer the associated questions below: Nams lives in Philadelphia and runs a business that sells guitars. In an average year, he receives $851,000 from selling guitars. of this sales revenue, he must pay the manufacturer a wholesale cost of $476,000; he also pays wages and utility bills totaling $281.000. He owns his showroom; if he chooses to rent it out, he will receive $71,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, If Nams does not operate this guitar business, he can work as an accountant and receive an annual salary of $34,000 with no additional monetary costs. No other costs are incurred in running this guitar business. and Total Refer to the information above. The total implicit cost is_ explicit cost is____? $37.000: $851.000 594,000: $35,000 $105.000: 757,000. $94.000: 535.000 Question 24 0.6 pts Use the following information to answer the associated questions below: Lucia's Performance Pizza is a small restaurant in Detroit that sells gluten-free pizzas. Lucia's very tiny kitchen has barely enough room for the three ovens in which her workers bake the pizzas. Lucia signed a lease obligating her to pay the rent for the three ovens for the next year. Because of this, and because

Answer 1

ANSWER:

Implicit cost = rent recieved fro showroom if he chose to rent + annual salary = $71,000 + $34,000 = $105,000

explicit cost = wholesale cost + wages = $476,000 + $281,000 = $757,000

so option c is the right answer.