Indicate whether each of the following is an explicit cost or an implicitcost.a. A manager's salaryb. Payments to Dell for computersc. A salary forgone by the owner of a firm by operating his or herown companyd. Interest forgone on a loan an owner makes to his or her owncompanye. Medical insurance payments a company makes for its employeesf. Income forgone while going to college
Indicate whether each of the following is an explicit cost or an implicitcost.a. A manager's salaryb. Payments to Dell for computersc. A salary forgone by the owner of a firm by operating his or herown companyd. Interest forgone on a loan an owner makes to his or her owncompanye. Medical insurance payments a company makes for its employeesf. Income forgone while going to college
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter3: Benefits, Costs, And Decisions
Section: Chapter Questions
Problem 3.7IP
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Question
Indicate whether each of the following is an explicit cost or an implicit
cost.
a. A manager's salary
b. Payments to Dell for computers
c. A salary forgone by the owner of a firm by operating his or her
own company
d. Interest forgone on a loan an owner makes to his or her own
company
e. Medical insurance payments a company makes for its employees
f. Income forgone while going to college
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