Suppose a Firm Has an Annual Budget of $200,000 in Wages

question 27

Multiple Choice

Suppose a firm has an annual budget of $200,000 in wages and salaries,$75,000 in materials,$30,000 in new equipment,$20,000 in rented property,and $35,000 in interest costs on capital.The owner/manager does not choose to pay himself,but he could receive income of $90,000 by working elsewhere.The firm earns revenues of $360,000 per year. What are the annual implicit costs for the firm described above?

• A)$450,000.
• B)$160,000.
• C)$90,000.

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Definitions:

RAM

Short for Random Access Memory, it's a form of computer memory that can be read and changed in any order, typically used to store working data and machine code.

Hardware

The physical components of a computer system, including the CPU, memory, and input/output devices.

Input Device

Hardware used to enter data and commands into a computer system; examples include keyboards, mice, and scanners.

Touchscreens

Input devices that allow users to interact with a computer or other devices by touching the screen directly with one or more fingers or a stylus.