Pat Used to Work as an Aerobics Instructor at the Local

question 88

Multiple Choice

Pat used to work as an aerobics instructor at the local gym earning $35,000 a year.Pat quit that job and started working as a personal trainer.Pat makes $50,000 in total annual revenue.Pat's only out-of-pocket costs are $12,000 per year for rent and utilities,$1,000 per year for advertising and $3,000 per year for equipment.
Refer to the information given above.Pat's explicit cost is _____ and Pat's implicit cost is ______.

• A)$16,000;$51,000
• B)$15,000;$36,000
• C)$16,000;$35,000
• D)$35,000;$16,000

---

Definitions:

Folk Theory

A set of beliefs or assumptions that are widely held by the general public but not necessarily backed by scientific evidence.

Furniture

Objects typically found in homes or offices that are used to support human activities such as seating, sleeping, and storing items.

Prototype Theory

Prototype theory is a model of categorization in cognitive science suggesting that mental categories are formed around typical examples or "prototypes" of that category.

Necessary Features

are essential characteristics or components required for something to be recognized or function in a certain way.