11) The Oh So Humble Bakery sells 300 muffins at a price of $1 per muffin. Its explicit costs for producing 300 muffins are $250. If the bakery is earning a normal rate of return, then its implicit costs must be A) $100. B) $200. C) $300. D) $400
11) The Oh So Humble Bakery sells 300 muffins at a price of $1 per muffin. Its explicit costs for producing 300 muffins are $250. If the bakery is earning a normal rate of return, then its implicit costs must be A) $100. B) $200. C) $300. D) $400
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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
Transcribed Image Text:11) The Oh So Humble Bakery sells 300 muffins at a price of $1 per muffin. Its explicit costs for
producing 300 muffins are $250. If the bakery is earning a normal rate of return, then its
implicit costs must be
A) $100.
B) $200.
C) $300.
D) $400
Answer: B
Diff: 2
Topic: Behavior of Profit-Maximizing Firms
Skill: Analytic
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