Barney decides to quit his job as a corporate accountant, which pays $14,000 a month, and goes into business for himself as a certified public accountant. He runs his business from his converted garage apartment, which he could rent out for $320 a month if he wasn’t using it as a home office. He must purchase office supplies worth $70 a month, and his monthly electricity bill has increased by $50 now that he is working out of his home office. After six months of working from home, Barney has earned an average of $16,000 per month.   Instructions: Enter your answers as a whole number.   a. What are Barney’s monthly explicit costs?        $      b. What are Barney’s monthly implicit costs?        $      c. What are Barney’s monthly economic costs?

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Barney decides to quit his job as a corporate accountant, which pays $14,000 a month, and goes into business for himself as a certified public accountant.

He runs his business from his converted garage apartment, which he could rent out for $320 a month if he wasn’t using it as a home office. He must purchase office supplies worth $70 a month, and his monthly electricity bill has increased by $50 now that he is working out of his home office.

After six months of working from home, Barney has earned an average of $16,000 per month.

 

Instructions: Enter your answers as a whole number.

 

a. What are Barney’s monthly explicit costs?

 

     $   

 

b. What are Barney’s monthly implicit costs?

 

     $   

 

c. What are Barney’s monthly economic costs?

 

[i need a,b,c answer i will 5 upvotes]

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