Use the information about Luther‘s tutoring business to choose the correct answer. Luther owns a tutoring business. In 2017, he decides he needs an economic profit of $70,000 in order to open a new location in 2018. Consider the following information about his business during 2017: He spent $5000 on new computer software for mathematics. (The software depreciates at 10% per year) He spent $15,000 in wages. He made $80,000 in total revenue. He spent $3000 paying bills. He paid $2000 interest on a loan. Which expense is an implicit expense? - computer software depreciation - wages - bills

Use the information about Luther‘s tutoring business to choose the correct answer. Luther owns a tutoring business. In 2017, he decides he needs an economic profit of $70,000 in order to open a new location in 2018. Consider the following information about his business during 2017: He spent $5000 on new computer software for mathematics. (The software depreciates at 10% per year) He spent $15,000 in wages. He made $80,000 in total revenue. He spent $3000 paying bills. He paid $2000 interest on a loan. Which expense is an implicit expense? - computer software depreciation - wages - bills

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter23: Profit Maximization

Section: Chapter Questions

Problem 5E

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