Lauren runs a chili restaurant in San Francisco. Her total revenue last year was $110,000. The rent on her restaurant was $48,000, her labor costs were $42,000, and her materials, food and other variable costs were $20,000. Lauren could have worked as a biologist and earned $50,000 per year. An economist calculates her implicit costs as A) $110,000. O B) $50,000. C) $63,000. D) $150,000.
Lauren runs a chili restaurant in San Francisco. Her total revenue last year was $110,000. The rent on her restaurant was $48,000, her labor costs were $42,000, and her materials, food and other variable costs were $20,000. Lauren could have worked as a biologist and earned $50,000 per year. An economist calculates her implicit costs as A) $110,000. O B) $50,000. C) $63,000. D) $150,000.
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter12: The Cost Of Production
Section: Chapter Questions
Problem 2QR
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![Lauren runs a chili restaurant in San Francisco. Her total revenue last year was
$110,000. The rent on her restaurant was $48,000, her labor costs were $42,000,
and her materials, food and other variable costs were $20,000. Lauren could have
worked as a biologist and earned $50,000 per year. An economist calculates her
implicit costs as
A) $110,000.
B) $50,000.
C) $63,000.
D) $150,000.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5d7c6df9-9072-40bc-ad85-7ace55fd8504%2F7e13f562-e555-4b94-aaa8-85fbd4134e87%2Fdt162xm_processed.png&w=3840&q=75)
Transcribed Image Text:Lauren runs a chili restaurant in San Francisco. Her total revenue last year was
$110,000. The rent on her restaurant was $48,000, her labor costs were $42,000,
and her materials, food and other variable costs were $20,000. Lauren could have
worked as a biologist and earned $50,000 per year. An economist calculates her
implicit costs as
A) $110,000.
B) $50,000.
C) $63,000.
D) $150,000.
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