Ralph Owns a Small Pizza Restaurant,where He Works Full-Time in the Kitchen.His

question 12

Multiple Choice

Ralph owns a small pizza restaurant,where he works full-time in the kitchen.His total revenue last year was $100,000,and his rent was $3,000 per month.He pays his one employee $2,000 per month,and the cost of ingredients and overhead averages $500 per month.Ralph could earn $35,000 per year as the manager of a competing pizza restaurant nearby.His total implicit costs for the year were:

• A) $100,000.
• B) $35,000.
• C) $60,000.
• D) $66,000.
• E) $72,000.

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