Tanesha Sells Homemade Candles Over the Internet

question 182

Multiple Choice

Tanesha sells homemade candles over the Internet.Her annual revenue is $64,000 per year, the explicit costs of her business are $17,000, and the opportunity costs of her business are $22,000.What are the implicit costs of her business?

• A)$17,000
• B)$22,000
• C)$39,000
• D)$47,000

---

Definitions:

Assembly Line Worker

An individual employed in a manufacturing process where a product is assembled in a sequential manner using a conveyance or other mechanism to move items from workstation to workstation.

CPI

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, used to estimate inflation.

Real Wages

Income from work, recalibrated to account for the cost of living changes, indicating the real value of earnings.

Economic Rent

Income earned from the use of a resource, above that which is economically or socially necessary, often associated with limited supply or monopoly conditions.