Darryl Runs a Sheep Station near Broken Hill

question 2

Multiple Choice

Darryl runs a sheep station near Broken Hill. The interest on the debt he incurred to buy his sheep station totals $3,000 per year. For Darryl, the interest is

• A) part of his economic profit.
• B) his normal profit.
• C) an implicit cost.
• D) his normal cost.
• E) an explicit cost.