John Moved His Office from a Building He Was Renting

question 19

Multiple Choice

John moved his office from a building he was renting downtown to the carriage house he owns behind his house.Which of the following statements shows how his costs change?

• A)Both his explicit and implicit costs will rise.
• B)His explicit costs will rise, while his implicit costs will fall.
• C)Both his explicit and implicit costs will fall.
• D)His explicit costs will fall, while his implicit costs will rise.
• E)His explicit costs will rise, while his implicit costs will remain the same.