Harvey Develops Gaming Apps from Home Instead of Working as an Engineer

question 66

Multiple Choice

Harvey develops gaming apps from home instead of working as an engineer and earning $50,000 a year.He has invested $20,000 to upgrade to the hardware that he needs and estimates his expenses at $17,000 a year.Downloads generated $130,000 in revenue during the first year.What are his implicit costs?

• A)$37,000
• B)$50,000
• C)$43,000
• D)$93,000
• E)$130,000

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Definitions:

Model Factory Town

A planned community designed primarily for the housing of factory workers and the functionality of a particular industry, promoting efficiency and productivity.

Industrialization

The transformation of an economy from being predominantly agricultural to one that is centered on manufacturing goods, which results in technological advancements and the growth of cities.

Chicago

A major city in the United States, located in Illinois, known for its significant historical and cultural contributions and as a hub for commerce and transportation.

American Federation Of Labor

An early labor union founded in 1886 in the United States, which aimed to organize skilled workers into national unions to improve their working conditions.